Service tax query

My doubt is regarding the exemption available to small service provider
Say, 
In 1st FY the Taxable service was Rs.12,00,000
In 2nd FY the Taxable service was Rs. 8,25,000
In 3rd FY the Taxable service was Rs. 19,00,000

In this case will the sevice provider be eligible for exemption of small service provider for 3rd FY?

If yes, why? even though in the act it specifies "preceding financial year", isn't 1st FY a preceding FY as well?