TaxTMI 
TaxTMI 
2022 (9) TMI 271
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....Order-in-Original dated 12.07.2016 passed by the Ld. Adjudicating Authority. 2. The Appellant is engaged in provision of GTA and Site Formation Services and had been regularly paying service tax and filing ST-3 returns disclosing the service tax liability therein. For the FY 2010-11 and 2011-12, the Appellant had discharged service tax at the prevalent rate of 10% and disclosed the same in ST3 returns filed. However, the Appellant had to issue certain supplementary invoices on account of cost escalation for the projects executed during the above period which was issued on 02.07.2012 and the payment received after that. The Appellant had charged service tax @ 10% on the said invoices even though when the rate of service tax had increased fr....
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....od from July 2012 to September 2012 was submitted on 12.04.2013. During the course of audit on scrutiny of ST-3 returns, it was found that the Appellant had reflected the payment @ 10% during the month of July 2012 under the category of 'Survey and Exploration of Mineral Services'. The Appellant was issued with a Show Cause Notice dated 04.04.2014 alleging that the Appellant was liable to pay Service Tax @ 12% after 01.04.2012 since rate was changed from 10% to 12% on that date. The Department relied upon Rule 4 of the Point of Taxation Rule, 2011. It is the case of the Appellant that they were required to pay Service Tax at the prevailing rate when the service was provided in terms of Rule 5B of the Service Tax Rules, 1994. The said provis....
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.... month of July 2012 and the effective rate of Service Tax has been changed from 10% to 12% w.e.f. 01.04.2012 vide Notification No.2/2012-ST dated 17.03.2012 (supra). 6. I find that the Hon'ble Supreme Court in the case of Association of Leasing and Financial Service Companies v. Union of India (supra) in para 19 has observed that "The taxable event is rendition of service. Hence, the impugned tax is different and distinct from tax on sale of goods under Entry 54 List II of the VIIth Schedule to the Constitution". Therefore, the rate of tax applicable on the date on which the services were rendered would be the one that would be relevant and not the rate of tax on the date on which supplementary invoices were raised. Therefore, the taxable ....