Sb cess

Dear Experts, An assesse who pays Ser tTax entirely under RCM has not paid SB Cess for all payments made in the month on November Post ( ie after 15/11/2015 ) under the impression that since sec 67A says Ser Tax Rate as applicable on the date services are provided is to be considered and all these services are provided prion to 15/11/2015 . However as per POT rule 7 it has to be paid. So can we argue the same with the deptt that provisions or Act prevails over rules. Please guide
Replies (2)

Yes I do agree with your proposition. Hon’ble SC in the case of Wazir Sultan Tobacco had held that the exigibility is determined on the date of manufacture. Thus, if a levy is introduced for the first time, the same should only be applicable on the goods manufactured on or after the date of levy.

If a similar analogy is drawn, an argument may be taken that the services were not liable to be taxed if provided prior to 15 November 2015. Thus, the question of taxability does not arise.

Further, Rule 7 merely gets authority from Rule 6(1) of the Service Tax Rules, 1994, which prescribes for the date on which the services are deemed to be provided. You may also refer to the definition of ‘Point of taxation’ under Rule 2(e) of the POTR. Thus, it prescribes for a facilitation as when the services are ‘deemed’ to have been provided for payment of Service tax and not actually when the services are provided.

One can also note that Rule 5 is only applicable on the new services. In this case, the services are not new but the levy is new.

Lastly, applicability of Rule 5 is merely provided vide a press release, which may be read for the benefit of the assessee.

thank you very much sir for sucn an elaborate clarfication.it will surely help us.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details