2012 (7) TMI 195 - AT - Service Tax

Abatement in respect of amount charged by GTA - Notification No 32/2004 - denial on ground that appellants have filed only revised declaration from the transporter for non-availment of CENVAT Credit of input or capital goods but has not filed such declaration on each and every consignment - Held that - Issue is no more res-integra. High Court in case of Neral Paper Mills Pvt.Ltd (2010 (9) TMI 297 (HC)) held that exemption is provided by way of notification and the Board can prescribe the procedure for availing the benefit of the said exemption notification. When nothing has been brought on record or alleged that GTA has availed credit on inputs and capital goods, denial of benefit of Notification No. 32/2004 is not correct in law. Following aforesaid decision issue decided in favor of assessee.

Summary

Issues:
Waiver of pre-deposit of Service Tax amounting to Rs.14,81,622/- with interest and penalty; Denial of benefit under Notification No.32/2004-ST due to failure in filing revised declaration on each consignment.

Analysis:
The Stay Petition was filed seeking waiver of pre-deposit of Service Tax, interest, and penalty. The adjudicating authority and the first appellate authority confirmed the amounts, reasoning that the appellant was not entitled to abatement of 75% of the gross amount raised by the Goods Transport Operator (GTO) between January 2005 to March 2008. However, during the hearing, it was observed that the appeal itself could be disposed of without the pre-deposit requirement. The counsel referred to a judgment of the Hon'ble High Court of Gujarat in a similar case, which favored the assessee. The issue revolved around the failure of the appellants to submit a revised declaration for each consignment, leading to the denial of benefits under Notification No.32/2004-ST. The Tribunal noted that the High Court's decision on the same issue was binding, and in line with it, the impugned order was set aside, and the appeal was allowed.