2009 (6) TMI 33 - AT - Service Tax

GTA service in relation to Import of Goods - There is no dispute that both the provider as well as the receiver of GTA service is eligible to abatement. However, the conditions stipulated in Notification 32/04 and 1/06-ST dated 01.03.2006 are required to be fulfilled before the benefit is availed. Assessees had produced photocopies of the consignment notes containing the required declaration obtained from the Transport Agency as to the non-availment of credit as well as non-availment of benefit of Notification No. 12/03 Matter remanded for verification of claim.

Summary

Issues:
1. Whether exemption available to Service Providers in relation to transport of goods by road is applicable to the manufacturer of CTD bars.
2. Fulfillment of conditions stipulated in Notification No. 32/2004 and 1/06-ST for availing benefits.
3. Disallowance of benefit by Commissioner (Appeals) based on insufficient documentation.
4. Request for remand to verify original consignment notes and extend benefit of notification.

Analysis:
1. The main issue in this case is whether the exemption available to Service Providers, specifically 'Goods Transport Agencies,' in relation to the transport of goods by road is applicable to the assessee, who is a manufacturer of CTD bars and the service recipient. Both the provider and the receiver of GTA service are eligible for abatement, subject to fulfilling conditions stipulated in Notification No. 32/2004 and 1/06-ST. The revenue contended that the assessees did not fulfill conditions related to non-availment of cenvat credit and benefit under Notification No. 12/03-ST.

2. The assessees produced photocopies of consignment notes with the required declaration from the Transport Agency regarding non-availment of credit and benefits. However, the Commissioner (Appeals) disallowed the benefit claimed, citing insufficient documentation. The assessees argued that they had submitted over 600 xerox copies of consignment notes obtained from DGCEI, Chennai. The counsel requested verification of original documents by the department to confirm fulfillment of conditions under the Notification and extend the benefit accordingly.

3. The Tribunal accepted the prayer for remand, setting aside the impugned order and sending the case back to the original authority for a fresh decision. The assessees will be given a reasonable opportunity to present their case, and the department will verify the original consignment notes to ensure the fulfillment of conditions stipulated under the Notification. The appeal was allowed by way of remand, emphasizing the importance of proper verification before extending benefits.

This detailed analysis highlights the key issues raised in the judgment, focusing on the interpretation of relevant notifications, the importance of proper documentation, and the decision to remand the case for further verification.