2009 (5) TMI 321 - AT - Service Tax

GTA service - 67% abatement in terms of Notification No. 1/2006-S.T., dated 1-3-2006 - Revenue proceeded against the appellants on the ground that they would not be entitled for the benefit of the said Notification as they had availed Cenvat credit The appellant also took the credit and later they have reversed it. In view of this, it was argued that the Commissioner was not justified in denying the benefit of the said Notification. Moreover, in terms of the recent Board s circular dated 29-1-2009 even there is no liability at all. stay granted

Summary

The Appellate Tribunal CESTAT, Bangalore ordered total waiver of pre-deposit of service tax, interest, and penalty until the appeal is disposed of. The appellant had discharged the service tax liability by availing 67% abatement. The Revenue argued against the benefit of the abatement due to availed Cenvat credit, which was later reversed by the appellant. The Tribunal found in favor of the appellant based on recent circular and reversed the pre-deposit requirement.