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2018 (1) TMI 216 - AT - Service TaxClassification of services - renovation, restoration, maintenance work with reference to various buildings like hotels, hospitals etc - Revenue contended that the services rendered by the appellant are liable to be taxed under the category of construction service during the period 10/09/2004 to 15/06/2005 and repair and maintenance of immovable property service for the period 16/06/2005 to 25/07/2007 - appellants claimed that the services provided by them are essentially restoration and renovation of immovable property and accordingly they are eligible to avail abatement of 67% in the taxable value. Held that: - an illustrative list of the various work executed by the appellant was provided. A brief of some of the sample work orders/contracts were also reproduced by the Original Authority in the said para. We have perused the same alongwith the applicable statutory entry relevant to construction services w.e.f. 10/09/2004. The relevant clause of the construction services in terms of Section 65 (3a) of the Finance Act, 1994 is “repair, alteration or restoration of, or similar services in relation to building or civil structure”. Regarding change of classification w.e.f. 16/06/2005, the Original Authority recorded that in most of the contracts, the appellant used the term maintenance and even if they have sometimes used the term “restorations” it is more akin to maintenance as the services were of continuous nature for maintaining properly in the hotel premises. It was observed that whatever terms were used in the agreements or contracts, the same were examined in the overall context to understand the scope of work before classifying the same under management or maintenance. CENVAT credit - payment of 6% / 8% on the value of exempted services - Rule 6 (3) (i) of the Cenvat Credit Rules, 2004 - Held that: the appellants have deposited the whole of Cenvat credit amounting to ₹ 2,97,310/- alongwith interest for delayed payment. As such, it should be considered that they have not availed such credit to attract the rigorous of Rule 6 (3) of Cenvat Credit Rules - the demand for the said amount for violation of Rule 6 (3) is not sustainable - penalty relevant to the said dispute is also liable to be set aside. Extended period of limitation - Held that: - the appellants were engaged in providing such taxable service to various corporate entities in a large scale operation. In this connection, we have perused the findings of the impugned order justifying the demand for extended period. The appeal filed by the appellant is dismissed except for setting aside the demand under Rule 6 (3) of Cenvat Credit Rules, 2004
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