https://www.taxtmi.com/caselaws?id=32192 In a general insurance contract, the taxable event occurs when the insurer receives the premium and assumes risk, so service tax is chargeable at the rate in force on that date. CESTAT Mumbai held that where a policy was issued and premium was received before the enhanced rate came into force, the later increase could not be applied to the remaining policy period. The Board circular and earlier Tribunal view supported the conclusion that the tax incidence was fixed when the contract was entered into. The demand for differential service tax, education cess, interest, and penalty was therefore unsustainable. en-us Tue, 21 Oct 2008 00:00:00 +0530 Wed, 30 Apr 2014 15:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=32192 In a general insurance contract, the taxable event occurs when the insurer receives the premium and assumes risk, so service tax is chargeable at the rate in force on that date. CESTAT Mumbai held that where a policy was issued and premium was received before the enhanced rate came into force, the later increase could not be applied to the remaining policy period. The Board circular and earlier Tribunal view supported the conclusion that the tax incidence was fixed when the contract was entered into. The demand for differential service tax, education cess, interest, and penalty was therefore unsustainable. Case-Laws Service Tax Tue, 21 Oct 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=32192