2016 (4) TMI 843

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....Respondent : Shri S K Karolia, Assistant Commissioner (AR) ORDER Per M V Ravindran This appeal is directed against Order-in-Appeal No. PIII/RS/338/2011 dated 30.11.2011 passed by the Commissioner of Central Excise (Appeals), Pune III. 2. Heard both sides and perused the records. 3. The issue involved in this case is regarding the demand of differential Service Tax liability on the a....

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....itted that the judgment is reported at - 2014-TIOL-794-CESTAT-MUM and produced a copy of the said order of the Tribunal. 4. On consideration of the submissions made by both sides and perusal of the records, we find that the issue is whether the Service Tax liability needs to be discharged by the appellant as per the prevailing Service Tax rate during the entire period of hire purchase of contra....

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....ice tax @ 5% and 8% while appellant were required to pay service tax @8% and 10.2% prevailing at the time of providing the service. 2. The appellant relied upon the decision of Tribunal in the case of Art Leasing Ltd. vs. CCE 2007 (8) STR 162 = 2007-TIOL-1493-CESTAT-BANG. The contention is that in case of hire purchase contract the Tribunal held that the rate of service tax will be rate prevail....

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....e purchase contract is entered, the taxable event occurs. We agree with the appellants that the installment payments are only obligations of the hirer. The finding of the Commissioner(Appeals) that the appellant continues to provide service during the payment of installments is not correct. Therefore, the rate of Service Tax will be the rate prevailing on the date on which the contract is entered ....