TaxTMI 
TaxTMI 
2026 (6) TMI 1009
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....ourse of audit, the officers found that to avail the benefit of the Notification No. 1/2006-ST dated 01.03.2006, the appellant should not have availed cenvat credit; hence, show-cause notice was issued denying the benefit of the exemption Notification and demanding service tax amount of Rs.73,53,696/- along with interest. The Commissioner in the impugned order referring to the conditions of the Notification held that to avail the benefit of abatement under Notification No.1/2006 dated 01.03.2006, the appellant should not have availed cenvat credit. Therefore, having availed cenvat credit the appellant had become ineligible for the abatement under the said Notification. Accordingly, service tax was demanded along with interest and also impos....
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....ned Authorised Representative on behalf of the Revenue reiterating the findings in the impugned order supports the view of the Revenue that since the appellant had availed cenvat credit they were not eligible for the abatement under Notification No.1/2006 dated 01.03.2006. 4. Heard both sides. The allegations in the show-cause notice allegations which are found in para 3 of the notice dated 15.09.2011 is reproduced below: "3. Whereas, the Cenvat credit has been taken by the assessee on the common services such as maintenance of the entire building including the convention halls (Mandaps), Security services, Car hire services, Courier services etc. and the above services are essential for providing Mandap Keeping and outdoor cate....
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....Moreover, we find that the dispute pertains to the period from October 2006 to March 2008 and the show-cause notice was issued on 15.09.2011 while audit note was issued on 19.01.2010. We also find that based on the records filed before us, the appellant has been filing ST-3 returns regularly claiming abatement and cenvat credit for other services. From the records filed before us, we find that in the ST-3 return for the period 2007 to 2008, taxable services has been declared as Mandap Keeper Services under taxable amount charged and they have clearly mentioned the abatement claimed them and have mentioned the cenvat credit claimed by them; hence we do not find any kind of misdeclaration of facts in their returns. They have also categoricall....
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....ed by Notification No. 1/2006, dated 1-3-2006. In a case where the assessee avails Cenvat credit, then in such cases the assessee is not entitled for abatement and the service tax liability will have to be discharged on the full value of the contract. There is nothing in these Notifications which prevents an assessee from not availing Cenvat credit and paying service tax on 100% of the contract value in respect of one particular contract and availing abatement and not availing Cenvat credit in respect of another contract. In other words, there is no stipulation in the Notification that the option to avail/non-avail Cenvat credit has to be exercised uniformly in respect of all the contracts executed by the assessee. It is for the assessee to....