Rates of Service Tax Reduced from 12% to 10% - Some doubts on date applicability of reduced rates may be solved with the help of decided cases

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....ates of Service Tax Reduced from 12% to 10% - Some doubts on date applicability of reduced rates may be solved with the help of decided cases <br>News and Press Release<br>Dated:- 6-3-2009<br><BR>It is natural that everybody in a fix after reduction of service tax rates from 12% to 10%. Lot of queries has been raised on this issue. In this regards, our netizens may take reference from some decide....

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....d case laws as: In the matter of: THE COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS,VADODARA-II Versus SCHOTT GLASS INDIA PVT. LTD [2009 -TMI - 32436 - HIGH COURT OF GUJARAT] the honorable High Court held that - Where the services have been rendered prior to introduction of service tax on a particular service - no service tax can be levied or collected on the facts that the amount pertaining to serv....

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....ices rendered earlier billed and realized after the introduction of such levy. In the matter of BAJAJ ALLIANZ GENERAL INSURANCE CO. LTD. Versus CCE, PUNE [2009 -TMI - 32192 - CESTAT MUMBAI] honorable CESTAT held that - Finance Act, 2004, increased the rate of service tax to 10% from the earlier rate of 8% - revenue contend that appellants are required to pay service tax at the revised rate - held....

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.... that enhanced rate is not applicable for the amounts subsequently collected as EMI - as the premium is received in advance and no further amount is collected, tax in force on date of payment of premium in advance is leviable - therefore, demand is set aside. In the matter of Reliance Industries Ltd. Versus CCE, Rajkot [2008 -TMI - 31530 - CESTAT AHMEDABAD] honorable CESTAT held that - rate of se....

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....rvice tax was 5% prior to 14.5.03 & it was enhanced to 8% from 14.5.03 and further enhanced to 10% w.e.f. 10.9.04 - clarification of the Board can not considered to be authorizing the application of rate prevailing at the time of billing/payment - hold that in absence of specific provision, the rate of tax applicable shall be the rate prevailing on the date of rendering the services. In the matte....

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....r of L.F.C. HIRE PURCHASE CO. LTD. Versus COMMISSIONER OF CUSTOMS & CENTRAL EXCISE (APPEALS), COCHIN [2008 -TMI - 30422 - CESTAT, BANGALORE] honorable CESTAT held that - in respect of hire purchase contract, the rate of tax applicable is the rate prevailing on the day the contract is entered into - higher rate is not applicable for contract entered prior to the hike - demand of differential amount....

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.... applying the higher rate not justified.<BR> News - Press release - PIB....