Refund under GTA service tax exemption required fresh factual verification, leading to remand for reconsideration.

Refund of excess service tax paid on GTA services under Notification No. 32/2004-S.T. turned on whether the exemption conditions, including payment of tax on only 25% of the gross amount and the prescribed restrictions on credit and other benefits, were satisfied. The original rejection was based on lack of supporting endorsement or evidence, but the record contained a transporter's certificate suggesting eligibility for the relevant consignments. As the eligibility question required fresh factual verification, the refund claim could not be finally decided on the existing record. The matter was therefore required to be remanded for fresh consideration with an effective opportunity of hearing to the assessee.

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Issues: Whether the rejection of refund of excess service tax paid on GTA services under Notification No. 32/2004-S.T. was liable to be sustained, or the matter required remand for fresh examination of eligibility.

Analysis: The refund claim rested on the exemption under Notification No. 32/2004-S.T., which permitted tax to be paid only on 25% of the gross amount subject to prescribed conditions regarding non-availment of credit and non-availment of the benefit of Notification No. 12/2003-S.T. The original authorities rejected the claim for want of supporting endorsement or other evidence, but the record included a transporter's certificate indicating admissibility of the exemption for the relevant consignments. In these circumstances, the eligibility issue could not be finally concluded without a fresh factual examination by the original authority and an opportunity to the assessee to place its evidence.

Conclusion: The matter was required to be remanded for fresh consideration of the refund claim in accordance with law, with an effective opportunity of hearing to the assessee.

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