Page 128 - GSTL_11th June 2020_Vol 37_Part 2

214 GST LAW TIMES [ Vol. 37
Rule 2(e) “exempted services” means taxable services which are exempt
from the whole of the service tax leviable thereon, and includes services on
which no service tax is leviable under Section 66 of the Finance Act and tax-
able services whose part of value is exempted on the condition that no cred-
it of inputs and input services, used for providing such taxable services,
shall be taken;’
Explanation. - for the removal of doubts, it is hereby clarified that ‘exempted
services’ includes trading;
He further submitted that during this period, the appellant availed abatement
with respect to restaurant service and accommodation service as per Notification
No. 1/2006-S.T., dated 1-3-2006 as tabulated hereinbelow :-

Sl. Sub clause of Description of taxable service Condi Per-
No. clause (105) of di- centage
Section 65 tions
1 2 3 4 5
13. (zzzzv) Services provided or to be provided, 30
to any person, by a restaurant, by
whatever name called, having the
facility of air-conditioning in any
part of the establishment, at any time
during the financial year, which has
license to serve alcoholic beverages,
in relation to serving of food or bev-
erage, including alcoholic beverages,
both in its premises;
14 (zzzzw) Services provided or to be provided, 50
to any person, by a hotel, inn, guest
house, club or campsite, by Whatev-
er name called, in relation to provid-
ing of accommodation for a continu-
ous period of less than three months.

Provided that this notification shall not apply in cases where, -
(i) The Cenvat credit of duty on inputs or capital goods of the
Cenvat credit of services tax on input services, used for
providing such taxable services, has been taken under the
provisions of the Cenvat Credit Rules, 2004; or
(ii) The service provider has availed the benefit under the notifica-
tion of the Government of India in the Ministry of Finance
(Department of Revenue), No. 12/2003-Service Tax, dated the
20th June, 2003 (GSR 503(E), dated the 20th June, 2003.
He further submitted that as per the Notification cited above, in order to avail the
benefit of abatement, there is a restriction that the service provider neither avails
Cenvat credit of duty on inputs or capital goods or the Cenvat credit of service
tax on input services. However, in order to fall within the definition of exempted
service, the usage of word is “inputs and input services” as against the word
“inputs or capital goods or input services” used in the abatement notification.
Therefore the abatement availed vide Notification No. 1/2006-S.T., dated 1-3-
2006 cannot be considered as exempted service for the purpose of reversal of
Cenvat credit as per Rule 6 of the CCR.
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