TaxTMI 
TaxTMI 
2018 (5) TMI 556
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....disposal. 3. Heard learned A.R. and perused the records. 4. The issue that falls for consideration in this appeal is whether the respondent herein is required to be saddled with service tax liability in respect of services rendered by them during the period April 2006 to March 2007 or otherwise. The respondent herein, during the relevant period, executed various contracts and undisputedly are liable to discharge the service tax liability on such services rendered by them. 5. Respondent herein had availed the benefit of Notification No. 01/2006-ST on the execution of contracts and discharged service tax liability on an amount calculated at the rate of 33% of the gross amount charged and received by them. It is the case of the Revenu....
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....cipient could enter into different contracts with the same service provider with different conditions. In other words, there is no explicit bar/ prohibition for the manufacturer to selectively opt for the Notification based on the conditions of each contract. Thus, if the contracts are executed providing the Service, in some cases, availing abatement and in other cases without availing abatement, there is no legal impediment. 3. The relevant portion of notification No. 1/2006-S.T. is reproduced hereunder for better appreciation: In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is ne....
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.... (i) the CENVAT credit of duty on inputs or capital goods or the CENVAT credit of service tax on input services, used for providing such taxable service, has been taken under the provisions of the CENVAT Credit Rules, 2004; or (ii) the service provider has availed the benefit under the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2003-Service Tax, dated the 20th June, 2003 [G.S.R. 503 (E), dated the 20th June, 2003]. 4. A plain reading of the notification makes it evident that it seeks to exempt the taxable service of the description specified in column (3) of the Table - the taxable service as specified in sub-clause (zzq) of clause (105) of section 65 of the Finance Act, subjec....
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....l construction service has been exempted subject to the service provider not availing following benefits: i. the cenvat credit of duty on the inputs or capital goods or the cenvat credit of service tax on input services, used for providing such taxable service, has been taken under the provisions of the CENVAT Credit Rules, 2004. ii. the service provider has availed the benefit under the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2003 dated 2003. 14. As seen from the show cause notice, the department went on the premise that once the service provider availed credit on inputs/input services under the CENVAT Credit Rules, 2004 even for some contracts, he would not be entitled to....
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.... department that the assessee cross utilized the credit for the services. As per the records submitted, the assessee maintained separate accounts for the contracts covered by abatement or otherwise. It is also not the case of the department that the assessee took credit on inputs, capital goods or input services used for executing the contracts for which service tax was discharged on availment of abatement. The notice is issued on the sole premise that availment of cenvat credit in respect of inputs, capital goods or input services even for one contract would disentitle the service provider from availment of benefit under Notification 1/2006 ST for all other contracts. The assessee gave the details of the amounts received, credit availed et....