2010 (1) TMI 510 - AT - Service Tax

GTA service - abatement of 75 per cent from the value - if the service provider has not availed the benefit of Cenvat credit on inputs and capital goods - should not have been availed the benefit of Notification No. 12/2003-ST also - department had initiated proceedings on the basis of audit observations that appellant had taken credit but there was no declaration on the body of consignment Held that - appeals filed by the revenue have no merits and accordingly rejected.

Summary

Issues:
Revenue challenging Commissioner (Appeals) decision on Cenvat credit declaration requirement for GTA services under Notification No. 32/2004-ST.

Analysis:
1. The appeals involve a challenge by the revenue against the Commissioner (Appeals) decision regarding the necessity of a declaration on non-availment of Cenvat credit for GTA services under Notification No. 32/2004-ST. The dispute arose from audit observations indicating the lack of declaration on consignment notes by the service provider, leading to the initiation of proceedings by the department.

2. The key contention raised by the revenue, represented by the Learned DR, was based on Circular No. B1/6/2005-TRU, stating the mandatory requirement for service providers to make a declaration on consignments confirming compliance with exemption conditions. The revenue argued that the Commissioner (Appeals) erred in granting Cenvat credit benefits without the necessary declaration.

3. Upon review, the Technical Member considered the submissions and noted the reliance placed by the Commissioner (Appeals) on the Tribunal's decision, specifically the case of CCE v. Sunhill Ceramics (P.) Ltd. The Technical Member also acknowledged additional decisions presented by the respondents' advocate, supporting the view that subsequent filing of declarations suffices, as demonstrated in cases such as CCE v. Neral Paper Mills (P.) Ltd. and CCE v. Advance Diesel Engg. (P.) Ltd.

4. In light of the consistent precedent set by the Tribunal decisions cited, the Technical Member concluded that the revenue's appeals lacked merit. Consequently, the appeals challenging the Commissioner (Appeals) decision on the Cenvat credit declaration requirement for GTA services under Notification No. 32/2004-ST were dismissed.