GTA service tax abatement allowed on general declarations confirming no benefit under the exemption notification was taken.

Abatement under Notification No. 32/2004-S.T. could be extended for GTA services taxed under the reverse charge mechanism where the taxpayer produced general declarations from the transport agencies confirming that the benefit of Notification No. 12/2003-S.T. had not been availed. The Board's circular dated 21.08.2008, which modified earlier instructions dated 27.07.2005, clarified that such declarations were sufficient even for past cases. On that basis, the condition for abatement was treated as satisfied and the service tax demand was not sustainable.

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Issues: Whether the assessee was entitled to abatement under Notification No. 32/2004-S.T. when it produced general declarations from the goods transport agencies stating that the benefit of Notification No. 12/2003-S.T. had not been availed.

Analysis: The service tax liability arose in respect of GTA services under the reverse charge mechanism. The declarations furnished by the goods transport agencies stated that no credit on inputs or capital goods used in providing the GTA service had been availed. The Board, by circular dated 21.08.2008 modifying earlier instructions dated 27.07.2005, clarified that the benefit of abatement under Notification No. 32/2004-S.T. could be extended in past cases where taxpayers produced a general declaration from the GTA that the benefit under Notification No. 12/2003-S.T. had not been taken.

Conclusion: The assessee satisfied the condition as clarified by the Board circular and the demand could not be sustained.

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