In this Article, an attempt has been made to discuss the Exclusions, Exemptions, Abatements and Options available under Service Tax Act. Exclusions are provided through clauses under an Explanation 1 appended to section 67, providing for Valuation of Taxable service for charging tax. Exemptions and abatements are notified by the Central Government, through delegated powers granted under section 94. Option is granted to specified category of service provider through Rules & Trade Notices to discharge tax liability, otherwise than under section 66. For the purpose of this Article, Exclusions, Exemptions, Abatements and Options are divided between General and Specific in nature for different categories of services.

1. General Exemptions/Exclusions applicable to all taxable services

   1. All the taxable services provided by any person to the United Nations or an International Organization, are exempted from whole of service tax. International organization means an international organization declared by the Central Government in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947 to which the provisions of the Schedule to the said Act, apply. (N. No. 16/2002 – Dt. 2-8-2002)

   2. Taxable service of any description as defined in clause 105 of section 65 provided to a developer of Special Economic Zone (SEZ) or a unit (including unit under construction) of SEZ, for consumption within such SEZ, is exempted from whole of service tax subject to the following conditions;

      • The developer has been approved by Board of Approvals to develop, operate and maintain the SEZ,

      • The unit of SEZ has been approved either by Development Commissioner or Board of Approvals to establish the unit is in SEZ and

      • The developer or unit of the SEZ shall have to maintain proper account of receipt and utilization of services on which exemption has been claimed.

      The terms Board of Approvals, Developer and Special Economic Zone have been defined in the said Notification. (N. No. 4/2004-Dt. 31-3-2004)

   3. Value of goods or materials sold by service provider during the course of provision of service is not liable to service tax provided there is documentary proof specifically indicating the value of said goods or materials, effective from 1-7-2003. Further, this exemption is available only in cases, where no credit of duty paid on the said goods or materials sold has been taken under Cenvat Credit Rules, 2004 or if such credit has been taken on the said goods or materials then the service provider has paid the amount equivalent to such credit availed before the sale of said goods or materials. (N. No. 12/2003- Dt. 20-6-2003 as amended by N. No. 12/2004- Dt. 10-9-2004)

   4. Taxable service of any description as defined in clause 105 of section 65 provided to any person in respect of which, payment is received in India in convertible foreign exchange, is exempted from whole of service tax, provided that the payment received in India in convertible foreign exchange is not repatriated from, or sent outside India (N. No. 21/2003 –Dt. 20-11-2003). The similar kind of exemption had earlier been provided by the N. No. 6/99- Dt. 9-4-1999 till 28-2-2003. For the intervening period; i.e., 1-3-2003 to 19-11-2003 the benefit of this exemption for payment received in convertible foreign exchange for services provided, was not available.
       

2. General Exemptions applicable to new taxable services and expanded taxable services with effect from 10-9-2004

   1. The Government has exempted that portion of value of new taxable services, such as aircraft operators, construction services, intellectual property rights, outdoor caterer etc. (12 new services), which is received by the service provider from service recipient before 10-9-2004 (N. No. 18/2004 – Dt. 10-9-2004).

   2. Further, in case of expanded services such as banking and other financial services, business auxiliary services etc. the portion of value of taxable service received by the service provider from service recipient, in relation to such expanded services before 10-9-2004 is exempted from whole of service tax (N. No. 25/2004- Dt. 10-9-2004). In other words, in case of levy of service tax on new taxable services and expanded taxable services, any advance received by the service provider, in relation to such new services or expanded services, before 10-9-2004 is not liable to service tax.
       

3. Specific Exemptions/Exclusions/Abatements/Options

   1. Advertising /Courier Agencies
      Taxable services provided by any advertising agency or courier agency to the Diplomatic Missions specified in the Schedule annexed to the Notification, has been exempted from whole of Service tax. For List of Diplomatic Missions included in the said Schedule refer to the said Notification (N. No. 44/98-Dt. 22-1-1998 as amended by N. Nos. 47/98- Dt. 1-4-1998 and 6/2002-Dt. 8-5-2002)

   2. Aircraft Operator
      Taxable services provided by an aircraft operator, in relation to transport of export cargo, by aircraft is exempted from whole of service tax (N. No. 28/2004-Dt. 17-9-2004). For the intervening period; i.e., 10-9-2004 to 16-9-2004 such services are liable to tax.

   3. Air Travel Agent

      1. An option has been given to the Air Travel agent to discharge his service tax liability at the rate of 0.5% of the basic fare in case of domestic booking and 1% of the basic fare in case of international booking, of passage for travel by air, during any calendar month or quarter (Rule 6(7) of Service Tax Rules, 1994). Prior to 13-9-2004, the rates were 0.40% and 0.80% of the basic fare respectively. An option once exercised shall not be allowed to change during the financial year under any circumstances.

      2. The portion of value of taxable service, which is in excess of the commission received by the air travel agent, from the airline for the booking of passage for travel by air, has been exempted from service tax, effective from 1-7-1997. (N. No. 22/97-Dt. 26-6-1997)

      3. Taxable services provided by an Air Travel Agent in relation to the booking of passage, to the Diplomatic Missions specified in the Schedule annexed to the Notification has been exempted from whole of Service tax. For List of Diplomatic Missions included in the said Schedule refer to the said Notification. (N. No. 51/98-Dt. 15-6-1998)

      4. Authorized Service Station
         Cost of parts or accessories or consumables such as lubricants and coolants, sold to the customer during the course of provision of service or repair of motor cars/two wheeled motor vehicles/light motor vehicles by the Authorised Service Station, is excluded from the value of taxable service for levy of service tax (Clause (iii) of Explanation 1 to section 67).

      5. Banking & Other Financial Services

         1. Interest on loans charged during the course of providing Banking & Other Financial services is excluded from the value of taxable service for levy of service tax (Clause (viii) of Explanation 1 to section 67).

         2. Taxable services provided by banking and other financial service provider in relation to collection of any duties or taxes levied by the Central Government or State Government is exempted from whole of service tax (N. No. 13/2004-Dt. 10-9-2004).

         3. Interest on overdraft and cash credit facility and Discount on Bills, Bills of exchange or Cheques discounted, is exempted from whole of service tax, provided such interest/discount, is shown separately in Invoice/Bill/Challan (N. No. 29/04-Dt. 22-9-2004).

      6. Beauty Parlour
         The taxable services provided by a beauty parlour in relation to hair dying has been exempted from service tax, effective from 16-8-2002 (N. No. 11/2002-Dt. 1-8-2002)
         
      7. Broadcasting Services
         The taxable services provided by a Cable TV Operator, in relation to broadcasting have been exempted from whole of service tax, effective from 16-7-2001 (N. No. 8/2001- Dt. 9-7-2001). However, benefit of this notification is available up to 8/7/2004 as the same has been rescinded by N. No. 7/2004- Dt. 9-7-2004.
         
         
      8. Business Auxiliary Services
         1. Commission agents providing services in relation to sale or purchase of agricultural produce have been exempted from whole of service tax. The expressions "Commission Agent" and "Agricultural Produce" have been defined in the said Notification. (N. No. 13/2003-Dt. 20-6-2003 as amended by N. No. 8/2004-Dt. 9-7-2004).
            
         2. The taxable services provided by Call Centres and Medical Transcription Centres to the client has been exempted from whole of service tax. To understand the terms "Call Centre" and "Medical Transcription Centre" refer to the said Notification (N. No. 8/2003-Dt. 20-6-2003 as amended by N. No. 12/2004- Dt. 10-9-2004).
            
         3. Taxable services provided by a commercial concern, except Factory governed by Factories Act, 1948; Company; Partnership Firm; Registered Society; Co-operative Society; Corporation or Body Corporate established under any law, in relation to procurement of goods or services, production of goods & provision of services on behalf of clients and any incidental or auxiliary service in relation to such services, are exempted from whole of service tax. It is further provided that, expanded services (as stated above) provided by any commercial concern in respect of specified activities namely, agriculture, printing, textile processing or education are also exempted from whole service tax (N. No. 14/2004-Dt. 10-9-2004).
            
            
      9. Cargo Handling Service
         Taxable service provided by cargo handling agency in relation to Agricultural Produce or goods intended to be stored in a cold storage has been exempted from whole of service tax, effective from 16-8-2002. The expression "Agricultural Produce" has been defined vide service tax (Removal of difficulty) Order, 2002 No. 1/2002-ST-Dt. 1-8-2002. (N. No. 10/2002-Dt. 1-8-2002).
         
      10. Practising Chartered Accountant/Cost Accountant/Company Secretary
          Practising CA/CWA/CS have been exempted from whole of service tax in relation to services, which are not specified in the Notification. The specified services in the Notification such as Accounting & Auditing, Certification of certain documents/returns/forms under Companies Act/Export and Import policy/FEMA etc. are being liable to service tax. However, if they are providing any taxable service, which is falling under any other category, then they are liable to pay service tax under that category (N. No. 59/98-Dt. 16-10-1998 as amended by N. Nos. 15/2002-Dt. 1-8-2002 and 6/2003-Dt. 14-5-2003).
          
      11. Commercial Training or Coaching Centre
          
          1. Taxable services in relation to Commercial training or coaching provided by the Vocational training institute and Recreational training institute have been exempted from whole of service tax. The expression "Vocational Training Institute and "Recreational Training Institute" have been defined in the Notification (N. No. 24/2004-Dt. 10-9-2004). Earlier, the exemption was granted to above said institutes along with computer training institute, which was in force for the period 1-7-2003 to 30-6-2004 (N. No. 9/2003-Dt 20-6-2003 as amended by N. No. 1/2004- Dt. 4-2-2004). For the intervening period; i.e., 1-7-2004 to 9-9-2004 the above said institutes are liable to service tax.
             
          2. Commercial coaching or training centre providing services in relation commercial training or coaching, which forms an essential part of a course or curriculum of any other institute or establishment leading to issuance of any certificate or diploma or degree or education qualification recognized by law, have been exempted from whole of service tax, effective from 1-7-2003, subject to the condition that the charges for such services are not paid by the person undergoing such course, directly to the said commercial coaching or training centre (N. No. 10/2003-Dt. 20-6-2003).
             
      12. Construction Service
          An abatement of 67% has been provided incase of composite construction contracts, where gross amount charged includes value of goods or materials sold, subject to the conditions referred to in Note 1 appended hereinbelow. (N. No. 15/2004-Dt. 10-9-2004).
          
      13. Consulting Engineer
          1. Taxable services provided by Consulting Engineer in relation to computer software have been exempted from whole of service tax (N. No. 4/99- Dt. 28-2-1999). However, benefit of this notification is available up to 9-9-2004, as the same has been rescinded by N. No. 23/2004- Dt. 10-9-2004. With effect from 10-9-2004, services in relation to computer hardware and software engineering have been taken out of purview of taxable services.
             
          2. In case a transfer of technology attracts Cess under Research & Development Cess Act, 1986, then the Cess amount so paid is deductible from the total service tax payable on such transfer by the Consulting Engineer (N. No. 18/2002- Dt. 16-12-2002). The Education Cess is to be payable on net liability; i.e., after deducting Cess amount from service tax liability.
             
      14. Convention Services
          An abatement of 40% has been provided incase of Convention services, where such services also includes catering services (i.e., supply of substantial and satisfying meal) and catering charges are included in the gross amount charged in the bill, subject to the conditions referred to in Note 1 appended hereinbelow (N. No. 10/2004-Dt. 9-7-2004 as amended by N. No. 12/2004-Dt. 10-9-2004).
          
      15. Custom House Agent
          An option is being granted to CHA, who undertakes turnkey imports or export, where lump sum is charged including agency fees and other expenses (break up not available), to discharge his service tax liability, by considering 15% of the lump sum amount charged to the clients, as a value of taxable service (Para 2.5 of Trade Notice No. 5/97- Dt. 12-6-1997 issued by Commissionerate-I, Mumbai).
          
      16. Erection, Commissioning or Installation
          
          1. Cost of parts or other materials, sold to the customer during the course of providing erection, commissioning or installation services, is excluded from the value of taxable service for levy of service tax (Clause (vii) of Explanation 1 to section 67)
             
          2. Taxable services provided by an erection, commissioning and installation agency, which is not a commercial concern, is exempted from whole of service tax (N. No. 18/2003-Dt. 21-8-2003 as amended by N. No. 12/2004-Dt. 10-9-2004). The department has clarified that in view of this notification, erection, commissioning or installation services provided by an individual are exempt from service tax.
             
          3. An abatement of 67% has been provided incase of Composite Contracts, where such contracts includes erection, commissioning or installation services along with supply of plant, machinery or equipment and value of such plant, machinery or equipment is included in the gross amount charged in the bill, subject to the conditions referred to in Note 1 appended hereinbelow (N. No. 19/2003-Dt. 21-8-2003 as amended by N. No. 12/2004-Dt. 10-9-2004).
             
      17. General Insurance
          1. Exemption has been provided to following schemes/Services from whole of tax, effective from 1-7-1994;
             
             1. Personal Accident Social Security and Hut Insurance Scheme
             2. Comprehensive Crop Insurance Scheme
             3. Cattle Insurance under Integrated Rural Development Programme.
             4. Scheme for Insurance of Tribal
             5. Janata Personal Accident Policy and Gramin Accident Policy
             6. Group Personal Accident Policy for Self-Employed Women
             7. Agricultural Pump set and Failed Well Insurance
             8. Premium collected on insurance of export of goods from India and export credit insurance
             9. Premium received from re-insurance both domestic and overseas
             10. All business for which premium is booked outside India
             11. Small transactions involving premium of less than Rs. 50/- except motor insurance
             12. To 15 pertaining to Telephone & Pager Services

             (N. No. 3/94-Dt. 30-6-1994)

          2. Taxable services provided by an insurer, carrying on general insurance business for non life insurance premium to the Diplomatic Missions specified in the Schedule annexed to the Notification have been exempted from whole of service tax. For List of Diplomatic Missions included in the said Schedule refer to the said Notification (N. No. 10/96-Dt. 26-11-1996 as amended by N. No. 11/96-Dt. 23-12-1996).

          3. Whole of tax exemption is also provided in case of following schemes/ services through various notifications;

             1. Jan Arogya Bima Policy issued by insurer carrying on general insurance business (N. No. 12/97-Dt 14-2-1997)

             2. Services provided by the Government of Rajasthan under Group Personal Accident Scheme, to its employees in relation to general insurance business (N. No. 1/2000-Dt. 9-2-2000)

             3. Services in relation to general insurance business provided under the National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana) or the Pilot Scheme on Seed Crop Insurance (N. No. 3/2000-Dt. 6-7-2000)

             4. Services in relation to Cattle Insurance provided under the Central Sector Scheme on Cattle Insurance (N. No. 4/2000-Dt. 31-7-2000)

             5. Services provided to a policy holder under Universal Health Insurance Scheme (N. No. 16/2003-Dt. 11-7-2003)

      18. Intellectual Property Right
          In case a transfer or use of an IPR attracts Cess under Research & Development Cess Act, 1986, then the Cess amount so paid is deductible from the total service tax payable on such transfer or use of an IPR (N. No. 17/2004- Dt. 10-9-2004). The Education Cess is to be payable on net liability; i.e., after deducting Cess amount from service tax liability.

      19. Life Insurance

          1. Taxable services provided by an insurer carrying on life insurance business, to a policyholder, in relation to life insurance business has been exempted from whole of service tax, effective from 16-8-2002 (N. No. 9/2002- Dt. 1-8-2002). However, benefit of this notification is available up to 9-9-2004, as the same has been rescinded by N. No. 23/2004- Dt. 10-9-2004.

          2. An option is given to an insurer carrying on life insurance business, to pay 1% of the total premium charged towards discharge of his service tax liability instead of paying tax at the rate specified in section 66, in case of composite contracts (risk plus savings). However, such option is not available in case of an insurance policy, where entire premium paid is only towards risk cover or where the premium payable gives details of risk premium and other premium separately (Rule 6(7A) of Service Tax Rules, 1994).

      20. Maintenance or Repair
          1. Cost of parts or other materials, sold to the customer during the course of providing maintenance or repair services is excluded from the value of taxable service for levy of service tax (Clause (vi) of Explanation 1 to section 67)
          2. Taxable services provided under maintenance contract or agreement, in relation to maintenance or repair of goods or equipments, have been exempted from whole of service tax, effective from 1-7-2003, subject to the condition that the bill or invoice is raised and value of taxable service is received, prior to 1-7-2003. In other words, if the bill is raised or payment is received, on or after 1-7-2003 then the benefit of this notification is not available (N. No. 11/2003-Dt. 20-6-2003).
          3. Taxable services provided to a customer, by any person in relation to maintenance or repairs of computers, computer systems or computer peripherals have been exempted from whole of service tax (N. No. 20/2003- Dt. 21-8-2003). However, benefit under this notification is available up to 8-7-2004, as the same has been rescinded by N. No. 7/2004- Dt. 9-7-2004.
      21. Management Consultant
          Taxable service provided by Management Consultant, in respect of Enterprises Resource Planning (ERP) software system, in connection with management of any organization has been exempted from whole of service tax (N. No. 16/2004-Dt. 10-9-2004).
          
      22. Mandap Keeper
          1. An abatement of 40% has been provided incase of a mandap keeper services, where such services also includes catering services (i.e. supply of substantial and satisfying meal) and catering charges are included in the gross amount charged in the bill, subject to the conditions referred to in Note 1 appended hereinbelow (N. No. 21/1997-Dt. 26-6-1997 as amended by N. No. 12/2004-Dt. 10-9-2004).
             
          2. An abatement of 40% has been provided incase of a Hotels (providing Lodging & Boarding) providing services as a mandap keeper, where such services also includes catering services (i.e., supply of substantial and satisfying meal) and catering charges are included in the gross amount charged in the bill, subject to the conditions referred to in Note 1 appended hereinbelow (N. No. 12/2001-Dt. 20-12-2001 as amended by N. Nos.3/2003-Dt. 1-3-2003, 8/2004-Dt. 9-7-2004 & 12/2004-Dt. 10-9-2004). It is pertinent to note here that up to 8-7-2004, the whole of tax exemption was available to such service providers.
             
          3. Taxable services provided by mandap keeper, in relation to use of precincts of religious place as a mandap, have been exempted from whole of service tax, effective from 1-7-2003. The expression religious place is defined as "a place, which is meant for conduct of prayers or worship pertaining to a religion" (N. No. 14/2003-Dt. 20-6-2003).
             
      23. Outdoor Caterer
          1. Taxable services provided by an outdoor caterer, in relation to catering services on a railway train, have been exempted from whole of service tax (N. No. 19/2004-Dt. 10-9-2004)
             
          2. An abatement of 50% has been provided incase of a outdoor caterer services, where such service also includes catering services (i.e., supply of substantial and satisfying meal) and catering charges are included in the gross amount charged in the bill, subject to the conditions referred to in Note 1 appended hereinbelow (N. No. 20/2004-Dt. 10-9-2004).
             
          3. Taxable services provided by an outdoor caterer, in relation to catering services, have been exempted from whole of service tax, provided such caterer is located within the premises of any academic institution or medical establishment and such service is provided only within such premises (N. No. 21/2004-Dt. 10-9-2004).
              
      24. Photography
          1. Cost of unexposed photography films, sold to the customer during the course of provision of service by the Photography Studio or Agency, is excluded from the value of taxable service for levy of service tax (Clause (ii) of Explanation 1 to section 67)
             
          2. Taxable services provided in relation to still photography, by photography studio or agency, which are not commercial concerns have been exempted from whole of service tax (N. No. 6/2001-Dt. 9-7-2001 as amended by N. No. 13/2001-Dt. 27-12-2001). Prior to 27-12-2001 the said exemption was available only to the photography studios or agencies, which were not registered under the laws relating to shops and establishments.
             
      25. Pandal or Shamiana Contractor
          An abatement of 30% has been provided incase of a pandal or shamiana contractor services, where such services also includes catering services (i.e., supply of substantial and satisfying meal) and catering charges are included in the gross amount charged in the bill, subject to the conditions referred to in Note 1 appended hereinbelow (N. No. 22/2004-Dt. 10-9-2004).
          
      26. Rent-a-Cab Operator
          An abatement of 60% has been provided incase of a Rent-a-Cab services, subject to the conditions referred to in Note 1 appended hereinbelow (N. No. 9/2004-Dt. 9-7-2004 as amended by N. No. 12/2004-Dt. 10-9-2004). Thus Rent-a-Cab Operator is liable to pay service tax on 40% of the gross amount charged to the customer.
          
      27. Security Agency
          1. Taxable services provided by a security agency, in relation to safe deposit lockers or safe vaults for security of movable property, has been exempted from whole of service tax, effective from 16-10-1998 (N. No. 56/1998- Dt. 7-10-1998). However, benefit under this notification is available up to 8-7-2004, as the same has been rescinded by N. No. 7/2004- Dt. 9-7-2004.
             
          2. Taxable services provided by security agency, to the Diplomatic Missions or members thereof holding diplomatic status of the countries specified in the Schedule annexed to the Notification, have been exempted from whole of service tax. For List of Diplomatic Missions included in the said Schedule refer to the said Notification (N. No. 1/2001-Dt. 3-7-2001 as amended by N. No. 7/2002-Dt. 8-5-2002).
             
      28. Sound Recording Service
          Cost of unrecorded magnetic tape or other storage device, sold to the customer during the course of provision of service by the sound recording studio is excluded from the value of taxable service for levy of service tax (Clause (ii) of Explanation 1 to section 67)
          
      29. Telephone & Pager Service
          1. Initial deposit made by the subscriber, at the time of application for telephone connection or pager or facsimile (FAX) or telegraph or telex or leased circuit, is excluded from the value of taxable service for levy of service tax (Clause (i) of Explanation 1 to section 67). However, the same is to be included in value of taxable service, if subsequently adjusted against value of taxable services.
             
          2. Exemption has been provided to following Telephone Services, effective from 1-7-1994;

             1 to 11 Pertaining to General Insurance Service.

             12. Departmentally run Public Telephones for local calls

             13. Guaranteed public telephones operating only for local calls

             14. Free telephone at Airports and Hospitals where no bills are being issued.

             (N. No. 3/94-Dt. 30-6-1994)

          3. Taxable services provided by Telegraph Authority, in relation to telephone connections, to the Diplomatic Missions or members thereof specified in the Schedule annexed to the Notification have been exempted from whole of service tax. For List of Diplomatic Missions included in the said Schedule refer to the said Notification (N. No. 5/96-Dt. 3-4-1996 as amended by N. Nos. 9/96-Dt. 26-11-1996, 14/97-Dt. 14-2-1997, 16/97-Dt. 23-5-1997, 36/97-Dt-22-8-1997, 3/2001-Dt. 3-7-2001, 3/2002-Dt. 19-3-2002, 4/2002-Dt. 3-5-2002 and 5/2002-Dt 8-5-2002).

      30. Tour Operator
          1. An abatement of 60% has been provided incase of a tour operator’s services, where such services are provided in relation to package tour (i.e., providing transportation and accommodation for stay) and package tour charges are included in the gross amount charged in the bill, subject to the conditions referred to in Note 1 appended hereinbelow (N. No. 39/1997-Dt. 22-8-1997 as amended by N. No. 12/2004-Dt. 10-9-2004).
             
          2. An abatement of 90% has been provided incase of a tour operator’s services, where such services are provided in relation to arranging or booking of accommodation and accommodation charges are included in the gross amount charged in the bill, subject to the conditions referred to in Note 1 appended hereinbelow (N. No. 40/1997-Dt. 22-8-1997 as amended by N. No. 12/2004-Dt. 10-9-2004).
             
          3. An abatement of 60% has been provided incase of a tour operator’s services, where such services are not in relation to package tour (i.e., providing transportation and accommodation for stay), subject to the conditions referred to in Note 1 appended hereinbelow (N. No. 2/2004-Dt. 5-2-2004 as amended by N. Nos. 8/2004-Dt.
             9-7-2004 & 12/2004-Dt. 10-9-2004). This is a general exemption given to tour operators. It is pertinent to note here that, up to 8-7-2004, 90% abatement was available to such service providers.
             
      31. Videotape Production Agency
          1.  Cost of unrecorded magnetic tape, sold to the customer during the course of provision of service by the Videotape production agency, is excluded from the value of taxable service for levy of service tax (Clause (ii) of Explanation 1 to section 67).
             
          2. Taxable services provided, by an individual professional videographers, in relation to videotape production have been exempted from whole of service tax, effective from 16-7-2001 (N. No. 7/2001-Dt. 9-7-2001).

   Note 1: The exemption/abatement is granted inter alia subject to the following conditions :-

   1. Cenvat credit on inputs or capital goods has not been taken under Cenvat Credit Rules, 2004.

   2. Benefit of notification (N. No. 12/2003- Dt. 20-6-2003 as amended by N. No. 12/2004- Dt. 10-9-2004) granting general deduction towards value of goods or materials sold during the course of provision of services has not been availed.