TaxTMI 
TaxTMI 
2012 (8) TMI 783
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....s, the appellants paid service tax by availing the benefit of Notification No. 1/2006-S.T., dated 1-3-2006 after availing 67% abatement from the gross amount received, while the department was of the view that in view of the conditions of the notification, this abatement is not available in respect of the completion and finishing services. It is on this basis that service tax demand of Rs. 31,81,046/- was confirmed against the appellant along with interest and besides this, penalty was imposed under Section 76 of the Finance Act, 1994. On appeal to the Commissioner (Appeals), the Commissioner (Appeals) vide order-in-appeal dated 15-11-2010 upheld the service tax demand except for modification that the appellant would be eligible to avail ce....
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.... treated as material sold and the benefit of Notification No. 12/2003 will be available, that thus throughout the period of dispute service tax actually paid by the appellant is more than their liability, that in view of this the impugned order upholding the service tax demand along with interest and imposition of penalty is not correct, that the appellant have strong prima facie case and hence, the requirement of pre-deposit of service tax demand, interest and penalty may be waived for hearing of the appeal and recovery thereof may be stayed till the disposal of the appeal. 4. Shri K.K. Jaiswal, ld. SDR opposed the stay application by reiterating the finding of the Commissioner (Appeals) in the impugned order and pleaded that during ....
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....d finishing services and since the activities of the appellant is completion and finishing services in respect of the construction of commercial or industrial complexes, 67% abatement would not be available to them. As regards the appellant's plea that 80% of the amount charged is for the materials supplied on which VAT has been paid and hence, they would be eligible for benefit of Notification No. 12/2003-S.T., we are of the prima facie view that since the amount on which the VAT has been paid is the value of the material used for providing the services, this material cannot be said to have been sold within the meaning of this terms as defined is Section 2(h) of the Central Excise Act, 1944 read with Section 65(121) of the Finance Act, 199....