By TIOL News Service

MUMBAI, AUG 12, 2014: THE applicant in this case is APMC, Ahmednagar and they are aggrieved by an order passed by the Commissioner (Appeals), Aurangabad.

The short facts are that proceedings were initiated by issuing a SCN demanding service tax in respect of ‘Business Support services' as well as of ‘Renting of Immovable property' services.

The adjudicating authority dropped the SCN. However, the Commissioner (Appeals) allowed the Revenue appeal and held that the applicants are not entitled for the benefit of the Small Scale exemption notification. In as much as he held that for the purpose of computing the aggregate value of taxable service the receipts in respect of exempted service are also to be taken into consideration.

Before the CESTAT, the applicant submitted that in view of the Explanation appearing in the Small Scale exemption notification, while computing the aggregate value of taxable service the receipts in respect of Business Auxiliary service which are exempted from payment of service tax under Notification No. 14/2004-ST dated 10.9.2004are not to be taken into consideration. Furthermore, eligibility to exemption notification 14/2004-ST is clarified by the Board vide Circular 157/8/2012-ST dated 27.4.2012.

The Revenue representative relied upon the findings of the lower appellate authority and referred to paragraph 2(viii) of the impugned notification to justify the demand.

The Bench took a look at the Explanation to paragraph 3(B) of the notification and observed that prima facie the applicant has a strong case in favour.

Therefore, the pre-deposit of the dues was waived and a stay was granted.

The Stay petition was allowed.

In passing : Be it 175/86-CE or 8/2003-CE, one thing is assured…computing aggregate value of clearances is always made a debatable issue…

(See 2014-TIOL-1476-CESTAT-MUM)