2018 (5) TMI 1715

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....sed by the jurisdictional authorities but involve common issues for the period May 2001 to March, 2012. All appeals are disposed off through this common order. 2. The appellant is engaged in providing restaurant and short term accommodation services which became taxable from 01.05.2011. Notification No. 1/2006-ST dated 01.03.2006 as amended provides for abatement @ 50% (for short term accommodation services) and 70% (on restaurant services). This abatement is subject to the condition of non availment of credit on inputs, input services and capital goods. Through the impugned proceedings, the Department sought to deny the benefit of abatement under the above notification and demanded payment of service tax at the full rate, for the reason....

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.... the open air restaurant, he submitted that the same will not be covered under the service tax net and as such no service tax will be payable on this count. iii) He also relied on various case laws:- Chandrapur Magnet Wires (P) Ltd. vs. Collector-1996 (81) ELT 3 (SC). Hello Mineral Water (P) Ltd. vs. Union of India - 2004 (174) ELT 422 (All) Commissioner vs. Sanjay Engg. Industries -2016 (43) STR 354 (Raj.) Beekay Engg. Corporation vs. Commissioner -Final Order No. 57761/2017 dt. 09.11.2017 Tree House Hotel Club & Spa vs. Commissioner - Final Order No. 52854/2017 dt. 13.04.2017 5. Ld. AR appearing for the Revenue justified the impugned orders. He argued that the appellant is not denyi....

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....cation No. 1/2006-ST is claimed, will fall under the definition of "exempted service" as per Rule 2(e) of the Cenvat Credit Rules, 2004. The appellant, after availing the credit on common input services, has claimed that they have utilised only proportionate credit for payment of service tax on output service. The utilisation has been restricted in the proportion of turnover of its taxable service to total turnover, by considering the turnover from short term accommodation service as well as restaurant service as exempted service. Further, the proportion was provisionally determined on the basis of the turnover for the previous year and the same was finally determined at the end of the year and adjustment was made for reversal of credit wit....