2022 (10) TMI 632 - SCH - Service Tax

Levy of Service Tax - premium in terms of the insurance policy covering the future period at revised rates - chargeability to service tax if the rates are revised by law during the operation of policy already issued and service tax liability is discharged - HELD THAT - Considering the fact that the entire premium was paid prior to 10.09.2004 i.e. before the change in the rate of tax, has rightly observed and held that the assessee is not liable to pay the enhanced rate of tax. Appeal dismissed.

Summary

The Supreme Court of India upheld the decision of the Customs, Excise & Service Tax Appellate Tribunal regarding service tax on insurance premiums. The Tribunal ruled that if the premium was paid before a change in tax rates, the assessee is not liable for the enhanced rate of tax. The Court agreed with the Tribunal's decision, and the appeal was dismissed.