9911796707
TMI Blog2006 (12) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the value of services is subjected to tax on this kind of service. 2. The present writ petition is in the context of the issuance of the exemption Notification No. 1 of 2006-Service-tax, dt. 1st March, 2006 (copy at Annex.-C), under which certain concession is extended to various classes of service providers including the service provider in construction of complex activities. But, unfortunately for the petitioner, the concession/exemption comes with a condition. A particular condition with which the petitioner is aggrieved with is the proviso to the notification which reads as under : "Provided that this notification shall not apply in cases, where- (i) the Cenvat credit of duty on inputs or capital goods or the Cenvat credit of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sense that whereas those who have not availed of the Cenvat credit facilities are given the benefit of this notification, those who have availed of the Cenvat credit facilities are deprived of the benefit of this notification and therefore the notification is discriminatory, bad in law, unconstitutional and therefore the proviso which brings about such an effect on persons like the petitioner should be declared to be so and only the proviso should be struck down, etc. 5. Notices had been issued to the respondents and the respondents have entered appearance through Sri C. Shashikanth, learned standing counsel for the Central Government and also filed statement of objections. It is urged that the proviso imposing the condition subject t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is compelled to seek refuge only under the present notification which is not necessarily one extending any benefit to the petitioner as in fact the benefit is expressly denied to persons like the petitioner who have opted for claiming benefit of Cenvat credit of service-tax on input services; that therefore the petitioner is virtually discriminated in the matter of extending concession under the present notification. 7. The notification under Annex. -C which is one in exercise of the powers conferred under sub-s. (1) of s. 93 of the Finance Act, 1994 (32 of 1994) is one for the purpose of granting certain concessions to certain class of service providers. Sec. 93 of the Act reads as under : " 93. Power to grant exemption from service-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y under the provisions of the Act as otherwise determined, then there is no benefit to a person under the present notification. In a notification of this nature, if the person is put to election that either he can opt for Cenvat credit of duty on service-tax input services or to avail benefit under the present notification which is an option which is extended to a person which he can seek for, avail of or ignore, no grievance can be made that putting a person to such option is bad. 10. The notification has never the effect of either enhancing the tax liability of the petitioner nor does it per se discriminate against the petitioner as a concession which is subject to a condition as under the present notification, in the sense that, a perso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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