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Issues involved: Debit of GTA service tax in Cenvat credit account and abatement of 75% of freight charges under Notification No. 32/2004-ST.
Debit of GTA service tax in Cenvat credit account: The appellant challenged the demand on merits, citing an explanation to Rule 2(p) of Cenvat Credit Rules, 2004, which deemed 'GTA service' as an 'output service'. The Revenue demanded service tax on freight booked by the appellants, but it was argued that service tax is applicable only on transportation by GTA, not on all road transportation. The appellant had already paid a significant amount by cash and Cenvat. The Tribunal found the challenge strong on merits and considered the amounts already deposited as pre-deposit for the appeal. The pre-deposit of the balance amount of duty and penalties was waived, with recovery stayed until the appeal's disposal. The stay application was allowed, preventing coercive action by the Revenue during the appeal's pendency. Abatement of 75% of freight charges: The issue of abatement of 75% of freight charges under Notification No. 32/2004-ST was also raised. The appellant argued for a strong case on merits, emphasizing the explanation to Rule 2(p) of Cenvat Credit Rules, 2004. The Tribunal, after careful consideration, acknowledged the appellant's challenge and the substantial amount already paid. It allowed the stay application, directing that no coercive action be taken by the Revenue during the appeal process. The appeal was scheduled for hearing in due course.
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