Tribunal rules in favor of appellant on service tax treatment, allowing Cenvat credit.

The Tribunal found in favor of the appellant, highlighting discrepancies in the Commissioner's treatment of all services as Site Formation Service without considering the nature of services provided. It was established that the appellant regularly discharged service tax for both Site Formation Service and Commercial or Industrial Construction Service, availing abatement under Notification No.1/2006-ST. The Tribunal supported the appellant's position on the legality of availing Cenvat credit on capital goods without violating conditions for claiming abatement. The case was remanded for a reevaluation of the service tax demand on Site Formation Service, emphasizing the need for thorough verification of service tax payments and service nature.

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Issues:
1. Demand confirmation for entire services as Site Formation Services for the period 2006 to 2010.
2. Allegation of non-availability of abatement Notification No.1/2006-ST due to Cenvat credit availed on capital goods.
3. Discharge of service tax on regular basis for Site Formation Service and Commercial or Industrial Construction Service.
4. Treatment of entire services as Site Formation Service by the Commissioner without considering the nature of services.
5. Verification of payment of service tax, nature of services, and availability of Notification No.1/2006-ST.
6. Clarification on availing Cenvat credit on capital goods and abatement under Notification No.1/2006-ST.
7. Reconsideration of service tax demand on Site Formation Service.

Analysis:
1. The judgment addresses the confirmation of demand for services as Site Formation Services for the period 2006 to 2010. The appellant argued that they discharged service tax regularly for both Site Formation Service and Commercial or Industrial Construction Service, availing abatement under Notification No.1/2006-ST. The Tribunal found that the Commissioner treated all services as Site Formation Service without considering the contract documents, which clearly showed the different nature of services provided and tax discharged accordingly.

2. The issue of non-availability of abatement Notification No.1/2006-ST due to Cenvat credit availed on capital goods was raised. The appellant contended that they did not violate any conditions as there was no restriction on availing Cenvat credit on capital goods to claim the abatement. The Tribunal agreed with the appellant, stating that the abatement availed was legal and correct, as they did not utilize the credit for capital goods.

3. The judgment highlighted the importance of verifying the payment of service tax, nature of services provided, and the availability of Notification No.1/2006-ST. The Tribunal emphasized the need for a thorough examination of contract documents and billing to determine the correct discharge of service tax liability. It was noted that the appellant had not availed Cenvat credit on input or input services, contrary to the allegations made.

4. Regarding the treatment of services as Site Formation Service by the Commissioner, the Tribunal found that a re-examination of the matter was necessary. The Commissioner was directed to pass a fresh order after considering all facts and providing proper reasoning. The Tribunal allowed the appeal by remanding the case to the Original adjudicating authority for a reevaluation of the service tax demand on Site Formation Service.

In conclusion, the judgment addressed various issues related to the demand confirmation for services, abatement availed, verification of service tax payments, and the proper treatment of different types of services provided. The Tribunal emphasized the importance of a detailed examination of contract documents and billing to determine the correct discharge of service tax liabilities.

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