Non-retroactive Application of Enhanced Service Tax Rate on Advances Received

VLCC Health Care Ltd  Vs Commissioner of GST & Central Excise (CESTAT Chennai) Introduction: The case involves VLCC Health Care Ltd, which provides Health & Fitness Services and Beauty Parlour Services. The appellant had collected the entire cost of various packages in advance from clients. Service tax rates were revised from 8% to 12.24%. The dispute arose when the tax department alleged that the appellant should have paid service tax at the enhanced rate for services provided or to be provided after the rate revision. Analysis: The appellant argued that the circular issued by the Ce...