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TMI Blog2018 (7) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... e to service tax from 1st May, 2011. Prior to this date, the accommodation services were not chargeable to service tax. The assessable value for charging service tax is the composite amount chargeable by the assessee from their customers. This includes the charge towards accommodation, complimentary breakfast, meals, etc. Service Tax has to be discharged on the entire amount and no concession is given towards free meals or breakfast provided by the appellant. The appellant is entitled to abatement of 50% of the value on the total amount under Notification No. 1/2006-ST subject to the condition that he does not avail CENVAT Credit on the input services used in providing the accommodation services. The appellant in this case had availed two t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that they have not claimed the input CENVAT Credit. As far as the amount of service tax payable on the amount deducted towards breakfast is concerned, they paid the service tax on 50% of the value on the ground that this forms part of the composite amount on which they are entitled to the abatement of 50% as per Notification No.1/2006-ST. As far as the telephone services and laundry services are concerned, the appellant disputed the tax liability on the ground that their telephone services were not provided as a telecom operator and they are not covered under the service tax net as applicable during the relevant period. As far as the laundry services are concerned, the appellant argued that laundry services were not chargeable to ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urant Services. The credit already availed in 2009 was used to discharge the service tax liability. The Notification No.1/2006/ST does not say that assessee cannot avail any credit at all. The condition is that the abatement would be available only if input service credit is not availed on input services used for providing such services specified in column 2 of the notification." 10. Accordingly, they should also be allowed the benefit of the abatement even though they had availed some credit on common input services during the earlier period which credit was also used during relevant period. It is his submission that this issue settles their question of abatement on the full amount including the amount towards breakfast deducted by them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant is not entitled to the benefit of abatement even if he has availed credit of common input services. 12. I have considered arguments on both sides and examined the records. As far as the issue of abatement under notification No.1/2006-ST is concerned, there is no dispute that the appellant has not availed CENVAT Credit on any inputs or input services specifically towards provision of accommodation services. They had availed credit on common input services used for accommodation services (when it was not taxable) and other services. The question is whether this will disentitle the appellant to abatement under Notification No.1/2006-ST. This issue, I find is no longer res integra as the matter has been decided by the Hon'ble Chennai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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