G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a commercial concern to any person, in relation to commercial or industrial construction service "OLDconstruction service], from so much of the service tax leviable thereon under section 66 of the said Act, as is in excess of the service tax calculated on a value which is equivalent to thirty-three per cent. of the gross amount charged from any person by such commercial concern for providing the said taxable service:

Provided that this exemption shall not apply in such cases where –

(i) the credit of duty paid on inputs or capital goods has been taken under the provisions of the Cenvat Credit Rules, 2004; or

(ii) the commercial concern has availed the benefit under the notification of the Government of India, in the Ministry of Finance, (Department of Revenue) No. 12/2003-Service Tax, dated the 20th June, 2003 [G.S.R. 503 (E), dated the 20th June, 2003]; or

(iii) the taxable services provided are only completion and finishing services in relation to building or civil structure, referred to in sub-clause (c) of clause (25b) of section 65 of the Finance Act, 1994.

"OLD(ii) the commercial concern has availed the benefit under the notification of the Government of India, in the Ministry of Finance, (Department of Revenue) No. 12/2003-Service Tax, dated the 20th June, 2003 [G.S.R. 503 (E), dated the 20th June, 2003]."

Explanation.- For the purposes of this notification, the “gross amount charged” shall include the value of goods and materials supplied or provided or used by the provider of the commercial or industrial construction service "OLD construction service" for providing such service.

(Above Explanation has been added vide Notification No. 04/2005-ST, DT. 01/03/2005)

(In the notification the words “construction service" & in the proviso, clause (ii) has been substituted vide Notification. No. 19/2005-ST, DT. 07/06/2005)

[F. No. B2/8/2004-TRU]

(V. Sivasubramanian)
Deputy Secretary to the Government of India