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TMI Blog2008 (1) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... eeraiyan, Member (T). -1. This is an appeal against the order of the Commissioner (Appeals) No.168 /2007/Commr(A)/Raj, dated 14-8-2007. 2. Heard both sides. 3. The relevant facts, in brief, are as follows: (a) The appellant was receiving consulting engineering services from the service provider located outside India. (b) The rate of service tax was 5% prior to 14-5-2003 and it was enhanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Noida v. Matsushita TV & Audio India Ltd. - 2006 (1) S.T.R. 162 (Tri.- Del.) 3. Art Leasing Ltd. v. CCE, Cochin -2007(8) S.T.R. 162 (Tri. - Bang.) 5. The learned SDR supports the decision of the Commissioner (Appeals) and submits that in respect of service tax, the liability is linked to the payment of service charges and therefore, the relevant date would be the date of billing. He also relie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viable. Similarly, we hold that in absence of specific provision, the rate of tax applicable to the service tax shall be the rate prevailing on the date of rendering the services. 6.2 In Central Excise also, the duty on clearances for any month (other than March) becomes payable within a few days in the following month. The rate of duty is what is applicable on the date of clearance, and not on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e enhanced rate of 8%".
7. The above clarification of the Board cannot be considered to be authorizing the application of rate prevailing at the time of billing/payment. The linking of the rate of duty to the one prevailing on the date of billing or date of payment is not legally justified.
8. Appeal is allowed with consequential relief to the appellant.
(Pronounced in Court)
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