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2019 (6) TMI 213 - AT - Service TaxClassification of services - construction services or works contract services - benefit of N/NN. 1/2006-ST denied - benefit denied on the ground that they have utilised cenvat credit of GTA services for payment of Service tax on Commercial and Industrial Construction Service for March’2006 - HELD THAT:- Admittedly the Appellant were registered under the category of construction service and no dispute was raised by them regarding classification of service. Even though the category of “Works Contract” came into effect from 01.06.2007, they applied for said category only in January,2008. They never contested their classification of services before authorities. They had paid service tax on GTA Services under reverse charge mechanism and also availed credit of same - Whatever services of GTA were availed by them was in respect of Construction service and the exemption on value which is in excess of 33% was availed by them continuously. Obviously the tax on construction services paid by them was in respect of continuous service of Construction activity. The construction activity was not initiated and completed in March’2006, therefore the GTA services before March’06 has clear linkage for the service tax paid on construction service in March’06. Appellant did not contest the levy of service tax on construction services, but classified their services into “Works Contract” Service only w.e.f. Jan’2008. Hence prior to such period the services would remain classified under “Construction Services”. In case of reversal of the credit utilised by them they are eligible for benefit of exemption Notification - matter remanded to the adjudicating authority to ensure that the credit is reversed along with interest within four weeks of the passing of this order subject to which the Appellant shall be eligible for the benefit of impugned subject notification. Appeal allowed by way of remand.
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