2018 (5) TMI 888

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....ce and paid service tax @ 2%. With effect from 01.03.2008, vide Notification No. 7/2008-ST, the rate of service tax was raised from 2% to 4% under the Composition Scheme. Though the respondents had received an amount of Rs. 3,23,23,005/- after 01.03.2008, they had discharged service tax on the said amount only @2%. The department was of the view that such amount was received by the respondents after 01.03.2008 and hence they are liable to pay service tax on this amount @ 4% and not 2%. SCN was issued proposing to demand the differential amount of service tax along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In appeal, the Commissioner (....

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....8 which is contrary to the law declared by the Supreme Court is clearly invalid. In Commissioner of Central Excise, Bolpur v. Ratan Meltins & Wire Industries - 2008 (12) S.T.R. 416 (S.C.) = 2008 (231) E.L.T. 22 (S.C.), a constitution bench of the Supreme Court observed as under : "Circulars and instructions issued by the Board are no doubt binding in law on the authorities under the respective statutes, but when the Supreme Court or the High Court declares the law on the question arising for consideration, it would not be appropriate for the Court to direct that the circular should be given effect to and not the view expressed in a decision of this Court or the High Court. So far as the clarifications/circulars issued by the Centra....