2018 (9) TMI 646 - AT - Service Tax

Whether the appellant being deemed the service provider in respect of GTA service is entitled for exemption No. 32/2004-ST dated 03.12.2014? Held that - Board s letter No. B1/6/2005-TRU dated 27.07.2005 clarified that the declaration submitted by the transporter to the appellant is sufficient to comply with the condition of notification - appellant is entitle to exemption N/N. 32/2004/ST. - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Whether the appellant, deemed the service provider in respect of GTA service, is entitled to exemption No. 32/2004-ST based on the declaration submitted by the transporter.

Analysis:

The appeal before the Appellate Tribunal CESTAT Ahmedabad involved the question of whether the appellant, deemed the service provider for GTA service, is eligible for exemption under notification No. 32/2004-ST. The original authority had confirmed a demand for differential Service Tax, which was upheld in the order under appeal. The crux of the matter was the sufficiency and adequacy of the declaration submitted by the appellant from the concerned transporter to avail the benefit of the exemption. The department contended that although a declaration was provided, it did not meet the necessary conditions as per the notification, leading to the denial of the benefit.

In the proceedings, the appellant, represented by Shri. Amal Dave, argued that the declaration submitted fulfilled all the required conditions. The declaration stated that the concerned transporter had not availed Cenvat Credit for inputs and capital goods used in providing goods transport service, and had not utilized the benefit of a specific notification. The appellant relied on various judgments to support their case, emphasizing compliance with the notification's conditions based on the declaration provided by the transporter.

On the other hand, Ms. Nitina Nagori, Ld. Superintendent (AR) for the Revenue, reiterated the findings of the impugned order, emphasizing the department's stance on the insufficiency of the declaration submitted by the appellant. However, after careful consideration of the submissions and perusal of the records, the Tribunal, comprising Mr. Ramesh Nair and Mr. Raju, Members, analyzed the declaration provided by the transporter. The Tribunal referred to a relevant board's letter to ascertain the adequacy of the declaration in meeting the notification's conditions.

Based on the clarification from the board's letter, which highlighted the requirements for availing the abatement in taxable service of goods transport, the Tribunal concluded that the declaration submitted by the transporter to the appellant was sufficient to comply with the notification's conditions. Consequently, the Tribunal held that the appellant was entitled to the exemption under notification No. 32/2004-ST. Therefore, the impugned order confirming the demand for differential Service Tax was set aside, and the appeal was allowed in favor of the appellant.