Small scale exemption threshold must be computed on abated service value, not full gross value, where abatement applies.

For small scale exemption under Notification No. 6/2005, the exemption threshold is to be computed on the abated value of taxable services where abatement is available under Notification No. 1/2006, not on the full gross service value. The Tribunal followed earlier rulings that treated the post-abatement value as the relevant figure for threshold computation. On that basis, the exemption eligibility was determined in favour of the assessee.

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Issues: Whether, for the purpose of small scale exemption under Notification No. 6/2005 dated 7.6.2005, the value of taxable services was to be computed on the full service value or on the abated value after applying Notification No. 1/2006.

Analysis: The Tribunal noted that the controversy stood settled by earlier decisions holding that, where abatement is available, the value relevant for computing the exemption threshold is the value after such abatement and not the full gross value of the services. Since the issue had already been decided in favour of the assessee in prior Tribunal rulings, the same approach was applied.

Conclusion: The exemption threshold was required to be computed on the abated value of the services, not on the full service value, and the issue was decided in favour of the assessee.

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