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2013 (2) TMI 184 - AT - Service TaxPenalty u/s 78 – Work contract service - taxability prior to 1-7-2007 - Abatement of 67% - Waiver of pre-deposit - the main plank of argument advanced on behalf of the applicant that since there is a cross-fall-breach clause specifying that breach of one contract would also constitute breach of other contract, hence, both these contracts should be read together and accordingly the entire project being a turnkey project, the same is taxable as works contract only w.e.f. 1-7-2007 and not prior to that. - held that:- Prima facie we do not find merit in the argument of the applicant saying that due to the said cross-fall-breach clause stipulated in each of the said contract and the project being a turnkey project, therefore, no Service tax is applicable as the said service rendered by them is nothing but ‘works contract’ service. Benefit ofabatement of 67% of the value Notification No. 19/2003-S.T. – Notification No. 1/2006-S.T. from 1-4-2006 – Department argued that there were no supply of goods involved, therefore, the conditions of the said Notification are not satisfied – Held that:- A person who claims exemption or concession must establish clearly that he is covered by the provision(s) concerned and, in case of doubt or ambiguity, the benefit of it must go to the state. [CCE versus Hari Chand Shri Gopal & Ors., (2010 (11) TMI 13 - SUPREME COURT OF INDIA)] Prima facie case against the assessee - directed to make a pre-deposit of 25% of service tax.
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