2009 (6) TMI 231 - AT - Service Tax

Appellant are receiving Goods Transport Services and availing the benefit of Notification No. 32/2004-S.T. or 1/2006-S.T. The benefit of the Notifications was denied on the ground that the Applicants have not filed the requisite declaration from the Service Provider to the effect that they have not availed the credit on inputs or capital goods and the benefit of Notification No. 12/2003-S.T., dated 20-6-2003 has not been taken by them. - We find that as the Applicants have produced the declaration from the Service Provider Applicants have a strong prima facie case in their favour. - stay is granted

Summary

Issues:
Waiver of pre-deposit of Service Tax and penalty based on benefit denial under Notification No. 32/2004-S.T. or 1/2006-S.T. due to lack of declaration from Service Provider regarding credit on inputs or capital goods and non-availment of Notification No. 12/2003-S.T.

Analysis:
The Applicants sought waiver of pre-deposit of Rs. 63,73,472.00 and penalty after being denied the benefit of Notifications due to missing declarations from the Service Provider regarding credit on inputs or capital goods and non-availment of Notification No. 12/2003-S.T. The Applicants argued that they had obtained a declaration from the Service Provider confirming non-availment of such credits and benefits. The CBEC Instructions dated 21-8-2008 allowed for abatement benefit in past cases upon production of a general declaration from the Goods Transport Agency (GTA) stating the non-availment of credits or benefits. The Tribunal, noting the declaration provided by the Applicants, found a strong prima facie case in their favor. Consequently, the pre-deposit of Service Tax and penalty was waived, and recovery stayed during the pendency of the Appeal, thereby allowing the Stay Petition.

This judgment highlights the significance of fulfilling documentation requirements for availing benefits under specific Notifications. The Tribunal emphasized the importance of obtaining declarations from Service Providers to establish non-availment of credits or benefits, as mandated by the relevant Notifications. The Applicants' reliance on the CBEC Instructions proved crucial in their favor, as it provided a basis for extending the abatement benefit in cases where the GTA confirms the non-availment of credits or benefits. By accepting the declaration provided by the Applicants, the Tribunal demonstrated a strict adherence to procedural compliance while also ensuring fairness in the adjudication process.

In conclusion, the Tribunal's decision to grant the waiver of pre-deposit and stay recovery during the Appeal process underscores the significance of proper documentation and adherence to regulatory requirements in availing tax benefits. The judgment serves as a reminder for taxpayers to diligently fulfill declaration obligations to substantiate their eligibility for statutory benefits, thereby ensuring a transparent and lawful tax regime.