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Issues involved: Interpretation of abatement under Notification No. 15/2004 and Notification No. 1/2006 for levy of Service Tax.
Summary: Issue 1: Abatement under Notifications No. 15/2004 and No. 1/2006 - Prospective or Retrospective Application The appeal challenged an Order-in-Original confirming a demand of Rs. 1,82,09,723 against the appellant, denying the benefit of abatement under the mentioned notifications. The key issue was whether the abatement provisions included the value of materials supplied free of cost in the assessable value of service, with a focus on the prospective or retrospective application of the explanation. The appellant cited decisions from the High Courts of Madras and Delhi, which held that the explanation had only prospective effect. The Tribunal, in line with these decisions, granted waiver of pre-deposit and stayed recovery of the dues during the appeal, following the view that the value of free materials should not be included for calculating taxable service. This judgment highlights the importance of legal interpretations in tax matters, specifically regarding the application of abatement provisions under relevant notifications. The Tribunal's decision to follow the precedents set by the High Courts demonstrates the significance of judicial decisions in guiding tax disputes and providing clarity on complex legal issues.
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