2009 (3) TMI 21

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....for the services rendered on or after 1.7.03 (when service tax was introduced on the commercial training and coaching service) was upheld by the Commissioner (Appeals) and also the penalty imposed was sustained. 2. The learned Chartered Accountant appearing for the appellant submits that the demand relates to the period from 1.4.03 to 31.3.04 and the show cause notice has been issued on 21.3.06 and, therefore, the entire demand is time barred. 3. Learned DR submits that the taxability of service tax in respect of amounts received prior to 1.7.03 when services are actually rendered on or after 1.7.03 has been decided in favour of the Department in the case of CCE, Allahabad vs. M/s. Krishna Coaching Institute reported in 2008-TIOL- 203....

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....of payment could be before the arrival of the vessel or after arrival before clearance from the port or cleared to warehouse under bond, then, at the time of clearance from the warehouse. The payment of Customs duty is not linked to payment of sale consideration to the exporter for the consignment imported. 6.3 However, in respect of service tax, the actual date of payment of the tax is linked with the date of receipt of payment of charges for the services. This is done as a matter of concession by way of postponing the payment and rationale is to not to burden the provider of service to pay the tax from his packet even before receipt from the service recipients. The Department has no role in deciding the date of payment of charges for t....

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....self before the above said amendments by Finance Act 2005 enlarging the term taxable service to include the services "to be provided". After the amendments this is permissible. 6.6 The findings of the Commissioner (Appeals) that since the value has been received prior to levy of service tax on such service, though the service has been provided after levy of service tax, no service tax is leviable is erroneous. The respondent has no vested right to collect in advance the fees for conducting the training programme to be conducted after 1.7.2003. The main obligation to pay tax arises out of Finance Act, 2003 and the service has been brought into tax nets by Notification No. 7/2003-ST dated 20.6.03 with effect from 1.7.03.This main obligatio....