By TIOL News Service

MUMBAI, SEPT 29, 2017: THIS is a Revenue appeal .

In the present case, although the appellants have provided services prior to 01/03/2006, the payment for such services were received in April and May 2006. The appellants had availed Notification No. 15/2004-ST dated 10/09/2004.

It is the contention of the department that since the payment was received in April/May 2006 when the notification No. 01/2006-ST dated 01/03/2006 was in force, the exemption is not available to the assesseeas they had availed the CENVATCredit in respect of input service.

Inasmuch as since taxability occurred only on receipt of payment, i.e. in April and May 2006, hence the appellant is not entitled for the exemption Notification No. 15/2004-ST, the AR emphasized.

The Bench observed -

++ The fact is not under dispute that the appellant availed CENVATCredit in respect of input service before 01/03/2006 and the service was also provided before that date. It is only the payment towards that service which was received in April and May 2006.

++ In our view, the taxable event is the time of provision of service and not on the date of receipt of the payment . 

++ Accordingly, the rate of duty which is prevailing on the date of service shall be applicable. At the time of providing the service, notification No. 15/2004-ST was available according to which there was no bar in availment of CENVATCredit on input service in order to avail such exemption.

Holding that there is no infirmity in the order of the Commissioner (Appeals), the same was upheld and the Revenue's appeal was dismissed.

(See 2017-TIOL-3542-CESTAT-MUM)