TaxTMI 
TaxTMI 
2013 (12) TMI 42
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....ce tax applicable at the time of rendering of service or at the time of receipt of payment. For detailed discussion and finding, Appeal No. ST/55656/2013-ST(SM) is being taken up. [A] ST/55656/2013-ST (SM) C.S.T.- Delhi-I Appellant Vs. M/s Epic India Pvt. Ltd Respondent This appeal has been filed by the Revenue against the Order-in-Appeal No.273/ST/DLH/2012 dated 10.10.2012. 2. Briefly stated, M/s Epic India Pvt. Ltd New Delhi are registered with Service Tax under the category of 'business auxiliary services'. On scrutiny of their ST-3 return for the period of October 04 to March 05, it was observed that the appellants contravened he provisions of Section 68 read with Section 66 of the Act read with Rule 6(1) & (2) of Service....
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.... invoices, against which the Cenvat Credit were availed, were submitted along with the ST-3 return and also with their reply dated 11.10.10. The copies of the relevant invoices substantiating the claim of Cenvat Credit, on examination, have been found to be substantiating the claim of Cenvat Credit of the appellants. Consequently, the order disallowing Credit of Rs.1,34,061/- and its recovery along with interest there on is not sustainable and is liable to be set aside. 5. The Commissioner (Appeals) further held that the appellants have submitted that for the services rendered prior to 10.09.2004, Service Tax has been paid as per the bills raised and Service Tax collected. It is to be noted that the rate of Service Tax was increased from....
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.... of time the rate of service tax 10.2% was applicable. Therefore, in this case, calculation of service tax @ 8%, as allowed by Commissioner (Appeals) was not legal and proper. 8. Ld. AR further submitted that in terms of Rule 6(1) of service tax Rules, 1994, service tax is required to be paid by the 5th of the month immediately following the month in which the payment was received. In view of this, service tax is to be calculated at the rate applicable at the time the service tax becomes chargeable. 9. The Learned Advocate, appearing for the Respondent has submitted that the issue is now settled by the decision dated 23/01/2013 by Hon'ble Delhi High Court in the matter of Vistar Construction Pvt. Ltd Vs. Union of India and others. ....
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....s the value of taxable services. Service tax shall, therefore, become chargeable on receipt of payment ad on the amount so received for the service provided or to be provided, whether or not services are performed. The rate applicable to a taxable transaction shall be the rate in force at the time the service tax becomes chargeable. This is a well settled legal position. The date on which the services were agreed to be provided has no relevance to determine the applicable tax rate when the service is already taxable at the time of revision of rate. 14. However, I find that Hon'ble Delhi High Court in the case of Vistar Construction (supra) has considered the said letter of TRU and given a categorical finding at para 7 & 8 which are extra....
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.... and it was found by the Hon'ble Court that the same was not applicable. The relevant para 9 is extracted below: It should also be mentioned that at that point of time neither was Rule 5B of the Service Tax Rules, 1994 in effect nor was Section 67A of the Finance Act, 1994 inasmuch as the latter provision was inserted in 2012 which came in effect from 28.02.2012. Furthermore, even Rule 4(a)(i) of the Point of Taxation Rules, 2011 was not applicable to the facts of the present case in as much as those rules also came into effect much later in 2011. Recently, we had to consider a similar issue in Commissioner of Service Tax Vs. Consulting Engineering Services (I) Pvt. Ltd. in St. April, 76/2012 decision on 14.01.2013 wherein we held that i....
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....ly, we answer the question in favour of the respondent and against the appellant. In view of above, the issue has been settled, hence the appeal filed by the Revenue is dismissed. [B] ST/55664/2013 -ST (SM) C.S.T.- Service Tax, Delhi-I. Appellant Vs. M/s Imprimis Life PR Pvt Ltd. Respondent The issue involved in this appeal is similar to that in Appeal No. ST/55656/2012-SM at [A]. 2. The amount of service tax involved Rs.51,224/-.The rate of Service Tax prior to 18.4.2006 was 10.2% whereas it was 12.24% after 18.4.2006. Thus payment was received after 18.4.2006 whereas service was rendered prior to 18.4.2006. [C] ST/3914/2012-ST (SM) C.S.T.- Service Tax, Delhi-I. Appellant Vs. M/s Tanya Publicity Limited Respondent T....