UMA POLYMERS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) IN this case, M/s. Lima Polymers Ltd. had utilized the service of transportation for outward transportation of goods from their factory.

(2.) This service was received during the month of April and May, 2007. But the appellants did not pay service tax on such service which they were required to pay. Later on, when issue was pointed out to them in November, 08, they paid such service tax by debit in their entry dated 28 -11 -2008 in the Cenvat account.

(3.) THE contention of the appellants is that during the time when service was received, it was possible to pay service tax for this type of service through Cenvat credit and the amendment to the rule prescribing that this tax has to be paid through cash has come into force from April, 2008 only. They argued that the provisions applicable at the time of receipt of the service would apply and not the provision in force at the time of payment of service tax. He relies on the decision of the Tribunal in the case of Reliance Industries Ltd. v. CCE reported in : 2008 (10) S.T.R. 243 laying down that the rate of duty applicable will be the rate in force when service was provided and not the rate on the date when service tax was paid.