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2018 (5) TMI 678 - AT - Service TaxWorks Contract Service - original works - service tax liability @40% or otherwise - work relating to laying of underground cables under or alongside the road - Abatement - Held that: - the learned Commissioner have rightly allowed deduction for work relating to laying of underground cables under or alongside the road, following N/N. 123/5/2010-TRU dated 24 May, 2010. The learned Commissioner have erred in not allowing the abatement is provided in Rule 2A Clause (ii) (A) which provides – where the value has not been determined under Clause (i), the person liable to pay tax on the taxable service involved in the execution of the works contract shall determine the service tax payable in the following manner –(A) In case of works contract entered into for execution of original works, service tax shall be payable on 40% of the total amount charged for the works contract. There is failure on the part of learned Commissioner to allow the admissible abatement under the Service Tax (Determination of Value) Amendment Rules, 2012, read with the Service Tax (Determination of Value) Rules, 2006. The show cause notice is not maintainable and misconceived - appeal allowed - decided in favor of appellant.
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