SANTOSH ASSOCIATES Vs. COMMISSIONER OF SERVICE TAX, AHMEDABAD

JUDGEMENT

(1.) VIDE this impugned order, the Service tax of Rs. 25,475/ - has been confirmed against the applicant -appellant along with imposition of penalty on the ground that the services rendered by him during the month of February, 2006, in respect of which the Service tax was paid after 1 -3 -2006 would be governed by the provisions of Notification No. 1/2006 -S.T., dt. 1 -3 -2006, which debars the availment of credit in case the assessee opts for abatement. It is the appellants contention that the service in question was prior to February, 2006, though the payments for such service was received by them after 1 -3 -2006. In terms of provisions of Rule 6(1) of Service Tax Rules, the tax is required to be deposited on or before 5th of the succeeding month. It is only deferment of deposit of tax. Such services were completed prior to 1 -3 -2006, they would be governed by Notification No. 18/2005 -S.T., which was in force at the time of rendering of service and did not debar availment of credit.

(2.) I find, prima facie, force in the above contention of the learned consultant and accordingly, dispense with the condition of pre -deposit of duty and penalty. The stay petition is allowed and the appeal is listed for final disposal on 6 -4 -2009.