GTA service abatement under exemption notification was treated as service-linked, supporting waiver of balance duty and penalty.

The abatement under Exemption Notification No. 32/2004-S.T. for Goods Transport Agency service was treated as attaching to the taxable service itself, so the tax burden could arise on different persons depending on who bore the freight. On a prima facie view, the benefit was not confined to cases where the Goods Transport Agency directly paid the tax, and the amount payable after applying the exemption had already been paid. The applicant therefore established a strong prima facie case for waiver of the balance duty and penalty, and the stay petition was allowed unconditionally.

---

---

Issues: Whether the benefit of Exemption Notification No. 32/2004-S.T. dated 3-12-2004, granting abatement on 25% of the gross amount charged for Goods Transport Agency service, was available in the facts of the case for the purpose of waiver of pre-deposit.

Analysis: The exemption was treated as attaching to the taxable service of Goods Transport Agency itself, and the tax liability could arise on different persons depending on who bore the freight. On a prima facie view, the benefit of the notification was not confined to cases where the Goods Transport Agency directly paid the tax, and the amount payable after considering the exemption had already been paid.

Conclusion: The applicant made out a strong prima facie case for waiver of the balance amount of duty and penalty, and the stay petition was allowed unconditionally.

---