nly rate of tax prevailing at time of rendition of taxable service could be levied and collected; rate in force on date when payment is made/received cannot be made applicable

Service Tax : Only rate of tax prevailing at time of rendition of taxable service could be levied and collected; rate in force on date when payment is made/received cannot be made applicable
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[2014] 51 taxmann.com 397 (New Delhi - CESTAT)
CESTAT, NEW DELHI BENCH
Commissioner of Service Tax, New Delhi
v.
Lea Associates South Asia (P.) Ltd.*
JUSTICE G. RAGHURAM, PRESIDENT
AND R.K. SINGH, TECHNICAL MEMBER
FINAL ORDER NO. 52688/2014
APPLICATION NO. ST/STAY/4853/2012
APPLICATION ST/3843/2012-CU(DB)
JULY  1, 2014
Section 66, read with section 65(31) of the Finance Act, 1994 read with rule 5B of the Service Tax Rules, 1994 and rules 3, 4 and 5 of the Point of Taxation Rules, 2011 - Charge/Levy - Service Tax - Assessee had provided services and raised bill on service recipients prior to 13-5-2003, when rate of service tax was 5 per cent - However, payment for those services was received on or after 13-5-2003, when rate of service tax had increased to 8 per cent - Department demanded service tax at 8 per cent on ground that rate in force on date when taxable event takes place is applicable and since service tax is payable on receipt basis, rate in force on that date viz. 8 per cent is applicable - HELD : Only rate of tax prevailing at time of rendition of taxable service could be levied and collected - Neither CBEC letter nor rule 5B authorise levy of service tax, at a rate not in force on date of rendition of taxable service, which is taxable event - Hence, service tax was leviable at 5 per cent only [Paras 6 & 7] [In favour of assessee]
Circulars and Notifications : CBEC Letter dated 28-4-2008