2014 (4) TMI 541 - AT - Service Tax

Rate of tax - revenue contended that consideration amounts were received when the rate of tax was increased from 5% to 8%, therefore, the respondents are liable to pay 8% and not 5%. - Held that - Following decision of Vistar Construction Pvt. Ltd. 2013 (2) TMI 52 - DELHI HIGH COURT - taxable event insofar as the service tax is concerned is the rendering of service - Decided against Revenue.

Summary

The Appellate Tribunal CESTAT MUMBAI dismissed the appeal filed by Revenue against the Commissioner's order dropping a demand of Rs.5,50,762/- for service tax. The Tribunal held that service tax is leviable based on when the service is provided, not when consideration amounts are received. The decision was based on a previous ruling by the Hon'ble High Court.