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2018 (7) TMI 1062 - AT - Service TaxSmall Scale exemption utpo ₹ 10 Lakhs - benefit of N/N. 6/2005-ST dated 01.03.2005 - Held that - The issue is covered by precedent decision of this Tribunal in the case of SHRI ASHOK KUMAR MISHRA, VERSUS COMMISSIONER OF CENTRAL EXCISE & S.T., ALLAHABAD 2018 (2) TMI 573 - CESTAT, ALLAHABAD , where it was held that the purpose of calculation of aggregate value as per said explanation B 60% of the consideration received by the appellant for which exemption was admissible does not need to be taken into consideration. The consideration received in each of the years was within threshold limit of small scale exemption provided through N/N. 6/2005-ST dated 01.03.2005 - appeal allowed - decided in favor of appellant.
Issues:
1. Eligibility for small scale exemption under Notification No. 6/2005-ST. 2. Consideration for service tax calculation. 3. Abatement of taxable value. 4. Appeal against Order-in-Appeal No. 289/ST/Alld/2017. Eligibility for Small Scale Exemption under Notification No. 6/2005-ST: The case involved a dispute regarding the eligibility of the appellant for small scale exemption under Notification No. 6/2005-ST. The appellant provided vehicles to M/s UPSRTC, and the revenue alleged non-registration under service tax. The Original Authority rejected the appellant's claim for exemption, leading to an appeal before the Commissioner (Appeals) who partially allowed the exemption for certain years. The appellant contended that the gross amount should be considered after abatement as per Notification No. 1/2006-ST. The Tribunal referred to a previous decision and held that 60% of consideration received for exempt services need not be included in the calculation. After excluding this amount, the Tribunal found the appellant eligible for the exemption for all relevant years, thereby allowing the appeal. Consideration for Service Tax Calculation: The revenue calculated the service tax liability based on the consideration received by the appellant from M/s UPSRTC. The appellant argued that the consideration should be assessed after abatement as per Notification No. 1/2006-ST. The Tribunal agreed with the appellant's interpretation, emphasizing that 60% of consideration received for exempt services should be excluded from the calculation. By considering the taxable amount after abatement, the Tribunal found that the appellant's consideration for each year fell within the threshold limit for small scale exemption under Notification No. 6/2005-ST. Abatement of Taxable Value: The Tribunal examined the abatement of taxable value in light of Notification No. 1/2006-ST, which provides for a certain percentage of abatement. It was established that 60% of consideration received for services exempt from service tax need not be included in the calculation of the taxable value. By excluding this amount, the Tribunal determined that the appellant's aggregate value of clearance for the relevant years remained within the permissible limit for exemption under Notification No. 6/2005-ST. Consequently, the Tribunal held that the impugned Order-in-Appeal was not sustainable and allowed the appeal. Appeal against Order-in-Appeal No. 289/ST/Alld/2017: The appeal was directed against Order-in-Appeal No. 289/ST/Alld/2017 passed by the Commissioner (Appeals), CGST & Central Excise Appeal Commissionerate, Allahabad. The Commissioner (Appeals) had reduced the appellant's tax liability but denied small scale exemption for certain years based on the gross amount exceeding a specified threshold. The Tribunal, however, disagreed with this interpretation, citing a precedent decision and allowing the appeal by holding that the appellant was eligible for the exemption for all relevant years.
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