2013 (11) TMI 98 - AT - Service Tax

Cenvat credit - GTA service - Held that - Prima facie that the applicant failed to furnish the consignment notes with the prescribed declarations for claiming the exemption under Notification No. 32/2004-ST dated 03.12.2004. The applicant has failed to make out a prima facie case against them and therefore they are required to pay service tax along with interest and penalty. Accordingly, we direct the applicants to deposit an amount of Rs.50,000/- within a period of six weeks. - stay granted partly.

Summary

Issues: Failure to furnish consignment notes for claiming exemption under Notification No. 32/2004-ST, non-compliance leading to demand of service tax, penalty, and interest.

Analysis:
1. The matter involves the applicant's failure to furnish consignment notes with prescribed declarations for claiming exemption under Notification No. 32/2004-ST dated 03.12.2004. The Tribunal notes that the applicant did not show interest in proceeding with the matter, as evidenced by multiple adjournments requested by them. The demand of Rs. 1,47,321/- on GTA services was primarily due to the applicant's failure to submit consignment notes as required for exemption. Additionally, a balance amount of Rs. 28,357/- was demanded as service tax payment was made from the Cenvat account without proper documentation.

2. Upon reviewing the submissions made by the Ld. AR, the Tribunal finds that the applicant failed to establish a prima facie case against the demand raised. Consequently, the Tribunal directs the applicant to deposit Rs. 50,000/- within six weeks. This deposit would allow for the waiver of the balance amount of tax, penalty, and interest until the appeal's disposal, with a stay on recovery. The applicant is required to report compliance by a specified date.

3. The Tribunal's decision reflects a strict stance on non-compliance with tax regulations and the necessity of furnishing required documentation for claiming exemptions. The order emphasizes the importance of adhering to statutory requirements and the consequences of failing to do so, including the imposition of penalties and interest. The Tribunal's directive for a partial deposit and subsequent waiver underscores the procedural steps to be followed in such cases, balancing the interests of both the applicant and the tax authorities. Compliance reporting further ensures timely follow-up on the prescribed actions.