S. NAGARAJ Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE benefit of exemption from payment of service tax in terms of Notification No. 6/2005 -S.T., dated 1 -3 -2005 which is available if the aggregate value of taxable services does not exceed Rs. 8 lakhs in a financial year, has been disallowed on the ground that the notification provided an option to the Assessees either to avail of exemption or pay tax, and by registration and payment of service tax, the Assessees had exercised their option to pay tax and not avail the benefit of exemption and, therefore, could not resile from it during the remaining part of the financial year.

(2.) I have heard both sides. The plea of the Assessee that it was due to wrong advice that they chose to register and pay service tax does not alter the factual position of having opted to pay tax and hence not opted for availing the benefit of notification. As per Clause 2(i) "the provider of taxable service has the option not to avail the exemption contained in this notification and pay service tax on the taxable services provided by him and such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year".

(3.) IN view of the above, I see no reason to interfere with the impugned order denying the benefit of the notification and confirming demand of Rs. 25,848/ - together with interest and imposition of penalty, and reject the appeal.