2009 (9) TMI 529

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....person was exempt from Service tax under Notification No. 13/2003-ST., dated 20-6-03 and this notification was amended only w.e.f. 9-7-04 so as to make the appellant liable for payment of Service tax. The appellant was issued SCN dated 19-6-07 for recovery of Service tax on non-paid tax amounting to Rs. 2,13,7861- along with interest for the period from 14-9-04 to 31-3-07 and also for imposition of penalty under Sections 75A, 76, 77 & 78 of the Finance Act, 1994. Though the appellant pleaded that the value of taxable ser vice, for the period from 14-9-04 to 31-3-2007, as determined by the Department also includes the amount which was outstanding as on 9-7-04 for the service provided during period prior to 9-7-04 and also the amount of recei....

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....rat High Court's in the case of Commissioner of Central Excise v. Schott Glass India Pvt. Ltd. reported in 2009 (14) S.T,R. 146 (Guj.) wherein the Hon'ble High Court has held that when taxable service was rendered between Nov., 01 and March, 02. Service tax liability cannot be fastened on the respondent for the service which became taxable w.e.f. 16-8-02, merely because the in voices were raised and payment was received after 16-8-02 and that when the taxable event is providing taxable service, liability to pay the tax would arise only when the same became taxable. He also pleaded that during the period of dispute, the appellant was eligible for small service providers exemption under Notification No. 6/05-S.T, which has not been considered....

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....es, 2002 and similar provisions in erstwhile Central Excise Rules, 1944, providing that rate of duty applicable to excisable goods shall be the rate in force on the date of removal of the excisable goods, there is no such similar provision in Chapter V & VA of the Finance Act, 1994, or in the Service Tax Rules, 1994, regarding the relevant date for determining the rate of tax, in case of Service tax, the rate applicable shall be the rate in force on the date on which the taxable event of providing the taxable service occurs, not the date on which the bill is raised or payment is received. For example, if the rate of Service tax during the period when a taxable service is provided is 12%, but the rate, when the payment for the taxable servic....