2007 (12) TMI 74 - AT - Service Tax

Goods Transport Agency - deemed service provider - paid tax on the services availed by them as deemed service provider and availed the benefit of Not. 32/04, which enabled them to pay the service on a value of 25% of the freight paid to the transporter declaration from transporter that they have not availed the credit on input/capital goods required to be produced to avail benefit of not. 32/04 declaration produced substantially though belatedly abatement available

Summary

The Appellate Tribunal CESTAT AHMEDABAD ruled that recipients of services under 'Goods Transport Agency' are deemed service providers under Section 68(2) of the Finance Act. They paid service tax based on Notification No. 32/2004, allowing payment on 25% of freight. The Tribunal upheld the Commissioner (Appeals) decision to grant benefit of the notification despite late submission of required declarations by the recipients. Department's appeals were rejected.