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TMI Blog2002 (12) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax allegedly not paid by the appellants on the services provided to its customer. 2. Ld. Advocate, Shri P. Dutta appearing along with Shri B. Banerjee, ld. Advocate, submits that the period in dispute is from July 1994 to September 1998. The demand of service tax is based upon the verification report of the Superintendent. He gives the bifurcation of amount of Rs. 15.51 crores upon wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt arises only on realisation of the consideration of the service provided by them. Drawing our attention to Section 65 (16) of the Finance Act, 1994, he submits that "taxable service" means any service provided to a subscriber, by the telegraph authority, in relation to a telephone connection. Section 67 is to the following effect :- " S. 67 For the purposes of this chapter, the value of taxabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s :- "Is service tax payable when service has been rendered, but no sums have been realised in payment?" It has been clarified that Rule 7 of the Service Tax Rules payable only on the value of the taxable services relied upon during the period." 3. Shri Dutta also draws support from Para 12 of the Hon'ble Supreme Court's decision in the case of Laghu Udyog Bharati v. U.O.I . reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng month i.e. July, 1994. (d) The Finance Act, 1994 relating to Service Tax was received from D.O.T. after 1-7-1994 as such there was no scope for levying Service Tax on Rental in Bills issued in July, 1994. 5. Shri Dutta also submits that no service tax leviable on the amount of surcharge collected for delayed payment on telephone bills and refers to the Board's Service Tax Circular No. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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