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TMI Blog2023 (6) TMI 848X X X X Extracts X X X X X X X X Extracts X X X X ..... TMI 401 - CESTAT, DELHI ] had analysed the very same issue and observed during the relevant time the rate that was applicable at the time of receipt of value of service will apply in a case where the assessee chose to pay tax on the advance amount received. The demand cannot sustain and requires to be set aside - Appeal allowed. - SERVICE TAX APPEAL No.41404-41405 of 2013 - FINAL ORDER No.40452-40453/2023 - Dated:- 20-6-2023 - Ms. SULEKHA BEEVI, Member (Judicial) And Mr. M. AJIT KUMAR, Member (Technical) Ms. R. Charulatha, Advocate For the Appellant Mr. M. Ambe, Deputy Commissioner (A.R) For the Respondent ORDER Brief facts are that the appellant is engaged in providing Health Fitness Services and Beauty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted by the Ld. Counsel that rate of service tax levied for the said services were revised from 8% to 10.2% w.e.f 10.09.2004 and from 10.2% to 12.24% w.e.f 18.04.2006. The CBEC vide Circular No.65/14/2003-ST dated 05.11.2003 prescribed the procedure that has to be adopted in case of payment that was received in advance. The relevant para of the said circular reads as under : ..Thus, rule 6 (1)cannot be read in isolation. When read along with the provisions of the Act, it becomes clear that where the value of taxable service has been received in advance for a service which became taxable subsequently, service tax has to be paid on the value of service attributable to the relevant month/quarter which may be worked out on pro rata basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay service tax at the revised rate of 12.24% for the period prior to 18.04.2006. The authorities below have relied upon the Board circular (supra). On perusal of the circular, it is indeed clarified the situation of payment of service tax when the service becomes taxable subsequently. It does not talk about situation of enhancement or revision of service tax. The Tribunal in the case of Vigyan Gurukul (supra) had analysed the very same issue and observed as under : 9 . What we notice is that the Circular 65/2003-ST was issued on 5-11-2003. At that time Section 65(105) defined taxable service to mean any service provided as defined in the said sub-section. With effect from 16-6-2005 the said sub-section was amended and thereaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pter shall apply to such person as if he is the person liable for paying the service tax in relation to such service. 11 . Considering the fact that Section 65(105) of Finance Act, 1994, defines taxable services including service to be provided and Rule 6 of Service Tax Rules prescribes payment of tax on consideration received during the calendar month without any reference to actual providing of service we are not able to agree with the point of view canvassed by Revenue. 12. We have also examined the Explanation in Rule 6(1). This explanation does not make any provision as to which rate of tax will apply in situation like the one at hand (whether that on date of receipt of value or that on date of providing service). Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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