2016 (10) TMI 577 - AT - Service Tax

Validity of SCN - rate of tax - rate as on date of payment of tax or as on the date on which service provided - Held that - nothing mentioned in the SCN about the period of service. When the liability arose is not coming out of the show cause notice, it is a case of denial of course of natural justice to defend. Such an ill founded SCN not being expectation of the law, adjudication fails to stand - SCN not tenable - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the appellant as the tax rate should apply based on the date the service was provided, not the date of tax payment. The show cause notice lacked clarity on the period of service, leading to a denial of natural justice. The orders were set aside, and both appeals were allowed.