GTA service tax abatement upheld where transporter declaration satisfied the exemption condition under Notification No. 32/2004-Service Tax.

For service tax on goods transport agency services, where liability rests on the consignor or consignee as deemed recipient, a transporter's declaration in the consignment note stating that no Cenvat credit on inputs or capital goods and no benefit of Notification No. 12/2003-Service Tax had been taken was treated as sufficient compliance with the abatement condition under Notification No. 32/2004-Service Tax. On that basis, the declaration furnished by the appellant was accepted as adequate, and the benefit of abatement was allowed. The service tax demand was set aside.

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Issues: Whether the appellant, as the deemed recipient liable to pay service tax on goods transport agency service, was entitled to the benefit of abatement under Notification No. 32/2004-Service Tax on the basis of the transporter's declaration that it had not availed Cenvat credit or the benefit of Notification No. 12/2003-Service Tax.

Analysis: The declaration furnished by the goods transport agency was examined in the light of the Board's clarification that, for cases where tax liability rests on the consignor or consignee, a declaration by the transporter in the consignment note stating that neither credit on inputs or capital goods nor the benefit of Notification No. 12/2003-Service Tax had been taken would suffice to establish compliance with the condition attached to the abatement notification. On that basis, the declaration produced by the appellant was held to be adequate compliance with the exemption condition.

Conclusion: The appellant was held entitled to the benefit of Notification No. 32/2004-Service Tax, and the demand was set aside.

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