Providing service immediately after the arrival is rarely been used in practice. But there are some situations for which servers are more than the arrivals and no one has to wait to get served. In this model, arrival rate is which follows a Poisson process and service time is exponentially distributed with rate . We have assumed the finite capacity queueing model and only number of customers can get service. Customers more than arrivals are rejected. We derive the explicit formulas for the average number of customers in the system by using recursive method to solve the system of steady state equations. Numerical results relevant to the performance indices have been presented so as to validate the results. The optimal rates of service have also been obtained by using routine optimization technique.