CEAC 23/2013. Case: Commissioner of Service Tax Vs Ratan Singh Builders Pvt. Ltd.. High Court of Delhi (India)
| Case Number | CEAC 23/2013 |
| Counsel | For Appellant: Mr. Geetanjali Sharma, Advocate and For Respondents: Mr. Ruchir Bhatia, Advocate |
| Judges | Badar Durrez Ahmed and Vibhu Bakhru, JJ. |
| Issue | Service Tax |
| Judgement Date | May 07, 2013 |
| Court | High Court of Delhi (India) |
Judgment:
Badar Durrez Ahmed, J.
CM No. 6603/2013 (Exemption)
Allowed subject to all just exceptions.
CM No. 6602/2013 (for condonation of delay in refiling)
The delay in refilling is condoned.
The application stands disposed of.
CEAC 23/2013
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This appeal is directed against the order dated 27.02.2012 passed by the Customs, Excise & Service Tax Appellate Tribunal in service ST Stay No. 1989/2011 and ST Appeal No. 965/2011. The Tribunal observed that the issue involved in the present case was whether the applicable rate of service tax would be the rate in force at the time of realisation of the consideration in respect of the taxable service or would it be the rate of tax which was in force at the time of the rendition of the taxable service. The Tribunal noted that recently it had decided that the appropriate rate of tax would be the rate which was in force at the time when the service was rendered and not the rate which was in force on the date in which the payments were received. Accordingly, the Tribunal dismissed the Revenue's appeal. The revenue is aggrieved by the said order dated 27.02.2012 and has preferred the present appeal before us.
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We may point out that the entire controversy arose out of the show cause notice dated 21.04.2009 wherein the main allegation against the respondent was as under:-
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Whereas on scrutiny of the ST-3 return of Works Contract Service for the period Oct. 07 March 08, it has been observed that the notice had paid the service tax in the month of March 1998 @ 20% instead of 4%. As per Ministry of Finance, Department of Revenue (Tax Research Unit) F. No. 345/6/2007-TRU dated 28.04.2008, the service tax shall become chargeable on receipt of payment and on the amount so received for the service provided or to be provided, whether or not services are performed. The rate applicable to taxable transaction shall be the rate in force at the time the service tax becomes chargeable. This is a well settled legal position. The date on which the services one record be provided has no relevance to examine the applicable tax rate the service is already taxable at the time of revision on rate. In view of the above, it is clarified that the rate of 4% is applicable for the Works contract service where the payment for the service is received on or after 01.03.2008.
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In the present case, it is an admitted position that the service in execution of Works Contract had been rendered by the respondent during the period...
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