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2018 (9) TMI 1446 - AT - Service TaxCompletion & Finishing Services in relation to residential complex - applicability of abatement in terms of Notification No.01/2006-ST dated 01/03/2006 - appellant was also providing services falling under the category of Construction of Residential Complex . Held that - As per condition of the Notification appearing against Sr. No.07 the exemption was not available in such cases where taxable services provided are only Completion & Finishing Services in relation to residential complex - the use of expression only makes it clear that abatement is not available in those cases where Completion & Finishing Services are being provided and no other services are being provided. In the instant case the appellant is not providing Completion & Finishing Services , only but such services are being provided by him in continuation of their main services which of Construction of Residential Complex - the said debarring condition appearing in the Notification, which denies the abatement in respect of Completion & Finishing Services would not apply in a case where such Completion & Finishing Services are in continuation of the main construction services. Appeal allowed - decided in favor of appellant.
Issues Involved:
Interpretation of Notification No.01/2006-ST dated 01/03/2006 regarding abatement in service tax liability for 'Construction of Residential Complex' and 'Completion & Finishing Services'. Confirmation of demand by Revenue and imposition of penalties under Sections 76, 77, and 78 of the Finance Act, 1994. Analysis: 1. Interpretation of Notification No.01/2006-ST: The appellant was providing services falling under 'Construction of Residential Complex' and discharging service tax liability after availing abatement as per the mentioned Notification. However, the Revenue contended that the abatement was not applicable to 'Completion & Finishing Services' provided by the appellant. The Tribunal examined the conditions of the Notification and noted that the exemption was not available for cases where only 'Completion & Finishing Services' were provided. The Tribunal clarified that the abatement was not available when only such services were provided without any other services. In this case, the appellant was not exclusively engaged in providing 'Completion & Finishing Services' but was providing them in continuation of the main construction services. Therefore, the debarring condition in the Notification did not apply as the 'Completion & Finishing Services' were part of the main construction services. 2. Confirmation of Demand and Penalties: The Revenue initiated proceedings against the appellant proposing a demand of ?1,56,690 for not complying with the interpretation of the Notification. The Lower Authority confirmed this demand and imposed penalties under Sections 76, 77, and 78 of the Finance Act, 1994. However, the Tribunal found no merit in the Revenue's stand as the appellant was providing 'Completion & Finishing Services' in continuation of the main construction services. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief to the appellant. In conclusion, the Tribunal interpreted the Notification No.01/2006-ST regarding abatement in service tax liability for 'Construction of Residential Complex' and 'Completion & Finishing Services'. It clarified that the abatement was applicable even when 'Completion & Finishing Services' were provided in continuation of the main construction services. The Tribunal overturned the confirmation of demand and penalties imposed by the Revenue, providing relief to the appellant in this case.
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