2010 (6) TMI 146 - AT - Service Tax

Penalties- Notification Nos. 32/2004-ST dated 3.12.2004 and 1/2006 dated 1.3.2006- M/s ONGC Ltd., Andhra Pradesh has filed this application for waiver of pre-deposit and stay of recovery of service tax of Rs. 32,06,125/- and penalties imposed on them under Sections 76 & 78 of the Finance Act, 1994. in the light of the decision of Paper Mills Ltd. Vs. CCE, Viskhapatnam 2010 -TMI - 75271 - CESTAT BANGALORE, allowed the benefit of the same notification finding that a consolidated declaration was sufficient compliance with the notification. Allow the appeal.

Summary

Issues: Application for waiver of pre-deposit and stay of recovery of service tax and penalties under Sections 76 & 78 of the Finance Act, 1994 based on exemption availed by the appellants under Notification Nos. 32/2004-ST and 1/2006 during a specific period.

Analysis:

The judgment by the Appellate Tribunal CESTAT, Bangalore involved a case where M/s ONGC Ltd., Andhra Pradesh, sought waiver of pre-deposit and stay of recovery of service tax and penalties amounting to Rs. 32,06,125/- under Sections 76 & 78 of the Finance Act, 1994. The issue revolved around the demand of exemption availed by the appellants under Notification Nos. 32/2004-ST and 1/2006 for the period from September 2005 to March 2006. The Commissioner had imposed penalties for failure to follow the prescribed procedure of obtaining a declaration signed by Goods Transport Agency (GTA) stating non-availment of Cenvat credit on each consignment note, as per CBEC Circular No. B1/6/2005-TRU dated 27.07.2005.

Upon review, the Tribunal found that the impugned order demanded the benefit of exemption under Notification No. 32/2004-ST due to the appellants' non-compliance with the declaration requirement. However, the Tribunal noted that for the earlier period, the exemption was not denied despite no amendment in the relevant notification conditions. Referring to a previous decision in the case of Andhra Pradesh Paper Mills Ltd. Vs. CCE, Viskhapatnam, the Tribunal observed that a consolidated declaration sufficed for compliance with the notification, as seen in Final Order No. 686/2009. In line with this precedent, the appellants in the present case had also provided a consolidated declaration instead of individual consignment notes with GTA declarations, leading the Tribunal to allow the appeal by M/s ONGC Ltd. The stay petition was consequently disposed of.

The judgment was pronounced and dictated in court by Member (Technical) P. Karthikeyan and Member (Judicial) M. V. Ravindran.