By TIOL News Service

MUMBAI, APR 09, 2014: REVENUE has filed this appeal against the order-in-originaldated 01.06.2008 passed by the Commissioner (Adj) whereby the Adjudicating authority dropped the demand of Rs.5,50,762/- by applying service tax rates that were in force when the service was provided.

It is the contention of the Revenue that the rate of service tax that is leviable is the one in force when the consideration amounts were received. Inasmuch as since the consideration amounts were received when the rate of tax was increased from 5% to 8%, therefore, the respondents are liable to pay 8% and not 5%. 

The Bench observed that the issue is settled by the decision of the Delhi High Court in the case of Vistar Construction Pvt. Ltd. (2013-TIOL-73-HC-DEL-ST) whereinit is held that the taxable event insofar as the service tax is concerned is the rendering of service.

Holding that there is no infirmity in the order of the adjudicating authority, the Revenue appeal was dismissed.

(See 2014-TIOL-531-CESTAT-MUM)