Excluding services already treated as exempt, the residual...

Excluding services already treated as exempt, the residual taxable turnover for construction of Anganwadi Kendras fell below the small service provider threshold under Notification No. 33/2012-ST; Explanation (B) excludes services exempt under another notification from aggregate value, so the related service tax demand was set aside. Amounts recorded as legal expenses were identified as expenditure for purchasing stamp papers, supported by government records, rather than consideration for legal services; accordingly, reverse-charge service tax was not payable. Since both tax demands failed, the penalties, being consequential, were also set aside. The appeal was therefore allowed and the impugned order was annulled.