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2007 (12) TMI 24 - AT - Service TaxGoods Transport Agency services - condition of not taking credit of duty paid on inputs of CG relate to the services actually rendered by the Transport Agency - respondent has not actually rendered the said services; as a consignor he has not availed credit - abatement under Not. 32/04 available
Issues:
Appeal against order of Commissioner (Appeals) regarding service tax on Goods Transport Agency services. Analysis: The appeal concerned the respondent availing services of a Goods Transport Agency, paying freight as a consignee, and service tax as a deemed service provider under Notification No. 32/2004-S.T. The original authority required a declaration from the Transport Agency regarding input credit, but the Commissioner (Appeals) held that the respondent, as a consignee, paying tax did not need to consider input credit of the Transport Agency. The Commissioner emphasized that the abatement for service tax did not depend on the credit taken by the respondent. The Commissioner's decision was based on the interpretation that the taxable service referred to the Goods Transport Agency, not the consignees, and thus, the consignees' credit did not affect the abatement entitlement. Regarding Goods Transport Agency services, the responsibility to pay tax could be on the consignor or consignee based on who paid the freight. The condition of not taking credit of duty paid on inputs or capital goods should relate to the services provided by the Transport Agency. The respondent, as a consignor, did not avail credit for providing taxable services, as they only paid the tax that the Transport Agency should have paid. The judgment supported the Commissioner's decision as legally sound and proper, emphasizing that the respondent's actions were in line with the law. Ultimately, the Tribunal upheld the Commissioner (Appeals) decision, stating that there was no reason to interfere with the findings. The appeal by the Department against the order was rejected, affirming the Commissioner's interpretation and decision regarding the service tax liability on Goods Transport Agency services.
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