General declaration accepted for service tax notification benefit, supporting waiver of pre-deposit and stay of recovery

A general declaration stating that no credit on input or capital goods had been availed and that benefit of Notification No. 12/2003 had not been taken was treated as sufficient for claiming Notification No. 32/2004-S.T. The demand had been raised only because the required declaration was not reproduced on the consignment notes, but a Board circular clarified that such a general declaration was adequate. On that basis, a prima facie case was found for interim relief, and the appellants were granted waiver of pre-deposit and stay of recovery pending the appeals.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery in proceedings relating to service tax demand under Notification No. 32/2004-S.T.

Analysis: The demand had been raised by denying the benefit of the notification on the ground that the required declaration was not stated on the consignment notes. The record showed that a general declaration had been filed stating that credit on input and capital goods had not been availed and that benefit of Notification No. 12/2003 had not been taken. A Board circular also clarified that such a general declaration was sufficient for availing the notification benefit. On that basis, a prima facie case was made out for interim relief.

Conclusion: The appellants were entitled to waiver of pre-deposit and stay of recovery during pendency of the appeals.

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