2012 (9) TMI 167 - AT - Service Tax

Goods transport agency - Denial of claim of Notification No.34/2004-ST dated 03.10.04 - Held that - As the adjudicating authority has disposed the show cause notice without considering the submissions of the appellant submitting an alternative plea of eligibility for abatement of 75% of the value of the amount paid by them towards the goods transport agencies the matter need to be remanded back to the adjudicating authority to reconsider the issue afresh.

Summary

Issues:
1. Claim of benefit under notification No.32/04-ST for non-discharge of service tax liability on services of goods transport agency.
2. Eligibility for benefit under Notification No.34/2004-ST for consignments less than Rs.750.
3. Eligibility for abatement of 75% of the value of amount paid to goods transport agencies.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Ahmedabad, involved a case where the appellant had claimed the benefit of notification No.32/04-ST to avoid service tax liability on services provided by goods transport agencies. The Tribunal noted that the issue was narrow in scope and decided to allow the stay petition and proceed with the appeal. The main contention was that the demand for service tax arose from the use of goods transport agency services for material delivery at the factory premises. The appellant argued eligibility for benefits under Notification No.34/2004-ST, stating that no service tax liability arises for consignments under Rs.750. Additionally, the appellant sought abatement of 75% of the amount paid to the transport agencies. The Tribunal observed that the adjudicating authority had not properly considered the submissions, leading to a lack of findings on these crucial points. Consequently, the Tribunal set aside the impugned order and remanded the matter for a fresh review by the adjudicating authority to ensure the principles of natural justice are followed. The Tribunal refrained from expressing any opinion on the case's merits, keeping all issues open for reconsideration.

In conclusion, the appeal was disposed of with the direction for the adjudicating authority to reexamine the eligibility of the appellant for benefits under Notification No.32/04-ST and Notification No.34/2004-ST, along with the claim for abatement, ensuring a fair assessment following the principles of natural justice.