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2018 (1) TMI 1215 - AT - Service TaxCENVAT credit - input services - rent-a-cab operator service - health club and fitness centre service - internet cafi service - dry cleaning service - Held that: - Rule 6 (5) as it stood during the relevant period states that credit is eligible on the services specified therein, if such services are not used exclusively for exempted services. Even if we consider that prior to 01.05.2011, the output services of short term accommodation services and restaurant services were not taxable services, the appellants were rendering other taxable services like health club and fitness service, internet cafi service etc. Since the services specified in Rule 6 (5) were not used by the appellant exclusively for non-taxable services, the appellants are eligible for the credit. Abatement under N/N. 1/2006-ST - Held that: - The N/N. 1/2006-ST does not say that assessee cannot avail any credit at all. The condition is that the abatement would be available only if input service credit is not availed on input services used for providing such services specified in column 2 of the notification - In the case of Bharat Heavy Electrical Ltd. Vs. CCE, Nagpur [2012 (4) TMI 197 - CESTAT, MUMBAI], the Tribunal had occasion to analyse a similar issue with regard to availability of abatement and held that there is no stipulation in the notification that the option to avail/non-avail CENVAT credit has to be exercised uniformly in respect of all the contracts executed by the assessee. It is for the assessee to choose which formulation he wants to follow in a given contract. Demand set aside - appeal allowed - decided in favor of appellant.
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