Transporter declaration requirement under Notification No. 32/2004 treated as substantially complied with, preserving exemption benefit.

Notification No. 32/2004 allowed the benefit for goods transport agency services where the transporter declared that no Cenvat credit had been taken on inputs or capital goods. Although the declarations were not produced when the benefit was first claimed, they were filed before the Commissioner (Appeals), who treated the condition as substantially satisfied. The Department did not show any material reason to overturn that finding, so the benefit of the notification was upheld.

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Issues: Whether the respondents were entitled to the benefit of Notification No. 32/2004 despite producing the transporter declarations belatedly.

Analysis: The respondents had discharged service tax as deemed service providers on goods transport agency services under Section 68(2) of the Finance Act. The benefit of Notification No. 32/2004 was conditional on production of declarations from the transporters that they had not availed Cenvat credit on inputs or capital goods. Although the declarations were not produced at the time of availing the benefit, they were produced before the Commissioner (Appeals), who treated the condition as having been substantially fulfilled. No material reason was shown to disturb that finding.

Conclusion: The respondents were entitled to the benefit of Notification No. 32/2004 and the Department's challenge failed.

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