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2014 (3) TMI 231 - CESTAT AHMEDABADDemand of service tax - Receipt of Commission - Denial of the benefit of small scale exemption under Notification No.6/2005-ST dt. 01.03.2005 - Non fulfillment of the conditions contained in para 2 of the exemption notification - Held that:- appellant has admitted that the service tax was leviable during the relevant period. However, it was argued that the benefit of value based exemption Notification No.6/2005-ST dt. 03.01.2005 was admissible to the appellant during the year 2006-07 and the differential service tax for the services provided in excess of ₹ 4 lakhs, provided during the financial year 2006-07 has already been paid by the appellant. The exemption limit of ₹ 4 lakh was enhanced to ₹ 8 lakhs w.e.f. 01.04.2007 vide Notification No. 4/2007 dt. 01.03.2007. It is observed that the total amount received towards services provided was only ₹ 6,58,100/- during 2007-08 which was less than the exemption limit of ₹ 8 lakhs. Prima-facie from the above facts it is evident that appellant was eligible to the exemption during the financial year. Show cause notice dt. 09.06.2010 issued to the appellant that it is not brought out anywhere that appellant has not fulfilled the conditions specified under exemption Notification No.6/2005-ST. It is also observed that appellant in their defense reply before the adjudicating authority claimed the benefit of exemption under Notification No.6/2005-ST dt. 01.03.2005. In view of the above appellant was not put to notice during the adjudicating proceeding to explain as to how the conditions specified in exemption Notification No.6/2005-ST were not fulfilled. Regarding duty liability for the period 2006-07 demand of duty over and above the exempted limit of ₹ 4 lakhs for the financial year 2006-07, is required to be discharged by the appellant alongwith the interest applicable - Penalty is also set aside - Decided partly in favour of assessee.
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