2011 (2) TMI 25 - AT - Service Tax

Waive pre-deposit - assessees had availed goods transport agency service and the exemption contained in Notification No.32/2004 for the purpose of paying service tax on the amount paid for transportation of the goods - invoices containing the declaration regarding non-availment of benefit of Notification No.12/2003 - goods transport agency had not availed CENVAT credit of duty on inputs or capital goods or CENVAT credit of service tax on input services - matter, set aside the order and remit the case for fresh decision

Summary

Issues:
Interpretation of Notification No.32/2004 for availing service tax exemption on goods transport agency service.

Analysis:

The judgment by the Appellate Tribunal CESTAT, CHENNAI, involved the interpretation of Notification No.32/2004 regarding the exemption for service tax on goods transport agency service. The issue revolved around the denial of the benefit of the notification to the assessees due to alleged non-fulfillment of conditions outlined in the notification. The primary reasons for denial were the timing of the endorsement related to non-availment of credit on inputs/capital goods by the goods transport agency under Notification No.12/03 and the absence of a declaration regarding non-availment of CENVAT credit of duty by the goods transport agency.

Upon reviewing the invoices containing the declaration regarding non-availment of benefit under Notification No.12/2003, the Tribunal found that the assessees could potentially demonstrate that the goods transport agency had not availed CENVAT credit of duty on inputs, capital goods, or service tax on input services. Consequently, the Tribunal set aside the impugned order and remitted the case for a fresh decision on the fulfillment of conditions of Notification No.32/2004 by the assessees to the adjudicating authority. The adjudicating authority was directed to provide a reasonable opportunity for the assessees to present their defense before passing fresh orders.

In conclusion, the appeal was allowed by remand, emphasizing the importance of proper fulfillment and documentation of conditions for availing exemptions under relevant notifications. The judgment highlighted the significance of providing a fair opportunity for assessees to address concerns and present evidence in their defense when contesting tax liabilities based on statutory provisions and notifications.