Appellant's Consideration Eligible for Abatement Under Notification No. 6/2005-ST

The Tribunal held that 60% of the consideration provided by the appellant to M/s UPSRTC was eligible for abatement under Notification No.6/2005-ST. By excluding this amount from the service tax calculation, the aggregate value remained within the exemption limit, resulting in the appellant's appeal being allowed and the Order-in-Appeal being set aside.

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Issues:
Interpretation of Explanation "B" of Notification No.6/2005-ST dated 01.03.2005 regarding exclusion of consideration for service tax calculation.

Analysis:
The appellant provided vehicles to M/s UPSRTC, leading to a demand for service tax based on the amount received. The appellant claimed abatement under various notifications to avoid service tax payment. The original authority dropped proceedings, but the Commissioner (Appeals) held that the abatement did not exempt the entire consideration from service tax. The Tribunal analyzed Explanation "B" of Notification No.6/2005-ST and found that 60% of the consideration, eligible for abatement, should be excluded from the service tax calculation. By excluding this amount, the aggregate value for the relevant years fell within the exemption limit under the notification. Consequently, the Tribunal set aside the Order-in-Appeal and allowed the appellant's appeal.

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