Goods transport agency abatement cannot be denied to a deemed recipient for the transporter's credit condition.

A notification condition requiring non-availment of credit by the service provider cannot be applied against a consignor or consignee made liable to pay goods transport agency service tax as a deemed recipient. Where the tax liability shifts under the statutory scheme, the person paying tax is not the ordinary service provider and does not avail input or capital goods credit for providing the transport service. The denial of the 75% abatement under Notification No. 32/2004-S.T. was therefore unsustainable, and the benefit of abatement was correctly allowed.

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Issues: Whether a consignee who pays service tax on goods transport agency services as a deemed service provider is entitled to the 75% abatement under Notification No. 32/2004-S.T. despite not producing the declaration regarding non-availment of credit by the transport agency.

Analysis: The notification condition concerning non-availment of credit of duty on inputs or capital goods applies to the goods transport agency that provides the taxable service. Where liability is shifted to the consignor or consignee under the statutory scheme, the person paying tax is not the service provider in the ordinary sense and does not avail input or capital goods credit for providing the transport service. The bar relied upon by the lower authority was therefore not applicable to the respondent's case.

Conclusion: The respondent was correctly allowed the benefit of abatement, and the denial of credit relief was unsustainable.

Final Conclusion: The department's challenge failed, and the order granting relief to the respondent was sustained.

Ratio Decidendi: A notification condition tied to non-availment of input or capital goods credit by the service provider cannot be invoked against a consignee or consignor made liable to pay goods transport agency service tax as a deemed recipient of the service.

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