General Exemption from Payment of Service Tax Accepted Due to Taxable Services Falling Below Rs. 10 L Threshold Limit of: CESTAT allows Appeal [Read Order]
The tribunal noted that the general exemption from payment of service tax on the aggregate value of taxable services not exceeding INR 10,00,000/- is provided in public interest.
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The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench, allowed an appeal and held that general exemption from payment of service tax was accepted due to taxable services falling below the threshold limit of Rs. 10 lakh. Also Read: Commercial Discount cannot beadmitted as Additional Consideration without Evidence: CESTAT Allows ExciseAppeal The...
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench, allowed an appeal and held that general exemption from payment of service tax was accepted due to taxable services falling below the threshold limit of Rs. 10 lakh.
The appellant, M/s Parth Enterprises, was registered as a service provider for providing taxable services including Legal Consultancy Services, Maintenance or Repair Service, Construction of Residential Complex Services. The appellant was alleged to have not discharged service tax on his taxable services of value INR 11,31,000/-.
A show cause notice (SCN) was issued for demand of service tax along with interest under Section 73(1) of the Finance Act, 1994 and for imposition of penalties along with late fee. The Original Authority reduced the demand but imposed penalties and late fees; he did not extend the benefit of exemption Notification No. 33/2012-S.T. claimed by the appellant.
The Commissioner (Appeals) rejected the appeal, upholding the order. The appellant submitted that, due to an accident, he was bedridden and could not provide Legal Consultancy Services to Co-operative Housing Societies.
He stated that he fulfils all the requirements for availing the exemption benefit and thus, the taxable value of services, if such exemption is provided, would be below the threshold limit and there will be no service tax demand. The tribunal noted that the general exemption from payment of service tax on the aggregate value of taxable services not exceeding INR 10,00,000/- is provided in public interest.
CESTAT observed that the appellant fulfils the essential requirements of all the conditions and is eligible for general exemption. The bench of M.M. Parthiban (Technical Member) held that there was no requirement for payment of service tax by the appellant. The order was set aside and the appeal was allowed.
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