https://www.taxtmi.com/caselaws?id=772650 CESTAT Chennai ruled in favor of appellant regarding service tax rate applicable to works contract services. The tribunal held that service tax liability should be computed at 2% rate prevailing when services were rendered before 01.03.2008, not the enhanced 4% rate effective from that date. Following precedents from Delhi HC in Vistar Construction and Consulting Engineering Services cases, the tribunal established that the relevant date for determining tax rate is when services are provided, not when payments are received. The demand for differential tax at enhanced rate based on payment receipt date was held unsustainable. Appeal allowed. en-us Wed, 07 May 2025 00:00:00 +0530 Thu, 12 Jun 2025 07:21:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772650 CESTAT Chennai ruled in favor of appellant regarding service tax rate applicable to works contract services. The tribunal held that service tax liability should be computed at 2% rate prevailing when services were rendered before 01.03.2008, not the enhanced 4% rate effective from that date. Following precedents from Delhi HC in Vistar Construction and Consulting Engineering Services cases, the tribunal established that the relevant date for determining tax rate is when services are provided, not when payments are received. The demand for differential tax at enhanced rate based on payment receipt date was held unsustainable. Appeal allowed. Case-Laws Service Tax Wed, 07 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772650