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2011 (3) TMI 672 - AT - Service TaxDemand - GTA services - Notification No. 12/2003-S.T., dated 20-6-2003 - Circular letter F. No. B1/6/2005-TRU, dated 27-7-2005 - Committee has opined that giving the benefit of abatement based on the certificate given by the transporters for the period from 9/05 to 9/07 without seeking and verifying the connected documents is legally not tenable - the ground of appeal taken in this case is vague and it does not provide any basis for holding any part of the relief granted by the Commissioner to be not legal or proper - Committee of Chief Commissioners has not provided any documentary evidence on the basis of which the Tribunal can either modify the adjudicating Commissioner s order or confirm any part of the said demand of Rs. 1.90 crores Board s Circular dated 21-8-2008 - When the legal provisions remained the same through out the period, any clarification given by the Board would be applicable for the entire period so long as there has been no change in the legal provision - Appeal is dismissed
Issues:
Interpretation of abatement conditions under Notification No. 32/2004-S.T. and Notification No. 1/2006-S.T. for GTA services; Requirement of declaration from Goods Transport Agency (GTA) regarding CENVAT credit or exemption under Notification No. 12/2003-S.T.; Validity of tax demand due to lack of evidence; Authority of Committee of Chief Commissioners to authorize appeals; Applicability of Board's Circular dated 21-8-2008 for the entire period. Analysis: The case involved a dispute regarding the payment of Service tax for Goods Transport Agency (GTA) services by M/s. Areva from April 2005 to March 2007. Areva had availed 75% abatement from the gross freight value under Notification No. 32/2004-S.T. and Notification No. 1/2006-S.T. However, the abatement was not available if the GTA had taken CENVAT credit on inputs or capital goods used for the service or had availed exemption under Notification No. 12/2003-S.T. The Board had issued a Circular requiring a declaration from the GTA in the consignment note, confirming no CENVAT credit or exemption under Notification No. 12/2003-S.T. The tax demand was initially confirmed against the respondents for not providing this declaration. Upon appeal, the Tribunal remanded the matter to the adjudicating authority for fresh consideration based on a clarification issued by the Board. The Committee of Chief Commissioners authorized appeals by the Department, challenging the relief granted by the adjudicating Commissioner. However, the Tribunal found the Committee's grounds for appeal vague and lacking in factual basis. The Committee had not conducted proper verification or provided documentary evidence to challenge the relief granted, leading the Tribunal to dismiss the appeals. Regarding the applicability of the Board's Circular dated 21-8-2008, the Tribunal held that the clarification should apply for the entire period from January 2005 to August 2005, as long as there was no change in the legal provisions. The Tribunal concluded that there was no valid reason to interfere with the adjudicating Commissioner's order, and thus dismissed the appeals filed by the Department based on the Committee's authorization. In the final judgment, the Tribunal upheld the relief granted by the adjudicating Commissioner and dismissed the appeals, emphasizing the importance of proper verification and factual basis for challenging tax demands and the applicability of circulars for the entire relevant period.
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