2024 (10) TMI 1132

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....as short paid by the appellants towards the managements, maintainenance or repair service shown as works contract service. However, as per the department till 30.06.2012 management, maintenance and repair service was taxable and was not covered under works contract service. 2) The benefit of abatement of 70% of the total amount charged towards works contract service was denied and an amount of Rs. 89,81,711/- was demanded as service tax short paid on the ground that the appellant have availed the Cenvat credit which is not permissible to the service as works contract service. 3) Service Tax amount of Rs. 16,32,909/- was demanded on the differential value as per reconciliation of income with the ST-3 return. 2. Shri Vipu....

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....take to reverse the credit accordingly, they are eligible for the concessional rate of service tax under works contract service post 01.07.2002. 2.3 He further submits that in this demand also the appellant are eligible for notification No. 12/2003-ST as the service was provided alongwith material and if the value of material is excluded, the value at which the service tax was paid, is either equal to the value of service or above the same. Therefore, there is no short fall of any service tax on this ground. For this reason even the demand of Rs. 16,32,909/- will also not be sustainable. 2.4 He also submits that since appellant have been paying the Service Tax regularly and filing their ST-3 return there is no suppression of fact. Acc....

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....uding finding on this issue, we considered the alternate submission of the appellant as if the concessional rate under works contract service is not available to the appellant up to 30.06.2012, the benefit of notification No. 12/2003-ST is Prima Facie admissible to the appellant, for the reason that the appellant are providing the service of management, maintenance or repair along with use of their material and the value of the material needs to be excluded. In this regard, the appellant rely upon the certificate endorsed by the Commercial Tax Officer, which is scanned below : - From the above certificate, it is seen that the appellant have paid the VAT on the value of goods used in providing the management, maintenance or repair service....