Notification benefit under reverse-charge allowed where supplier declarations confirm no Cenvat credit and no prior notification benefit.

Entitlement to the Notification benefit turned on compliance with the supplier declaration requirement under the relevant CBEC circular; the tribunal accepted declarations from goods transport agency providers confirming they had not availed Cenvat credit on inputs or capital goods and had not claimed the earlier notification benefit, and accordingly found the circular's prescribed declaration condition satisfied, resulting in grant of the Notification benefit and discharge of the impugned demand in favour of the appellant.

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Issues: Whether the appellant is entitled to the benefit of Notification No.32/2004-ST dated 03.12.2004 for goods transport agency services (reverse charge) where declarations were produced by the service providers stating that they had not availed cenvat credit on inputs/capital goods and had not availed benefit of Notification No.12/2003-ST dated 20.06.2003.

Analysis: The Tribunal examined the adjudicating authority's denial of Notification No.32/2004-ST benefit which was premised on absence of consignment notes endorsed with prescribed declarations as per Circular F.No.B1/6/2005-TRU dated 27.07.2005. During adjudication the appellant produced declarations from the goods transport agency service providers confirming they had not availed cenvat credit on inputs/capital goods and had not taken benefit of Notification No.12/2003-ST in the relevant period. On this factual and documentary basis the Tribunal applied the condition in the CBEC circular concerning the requisite declaration and found the condition complied with.

Conclusion: The appellant is entitled to the benefit of Notification No.32/2004-ST dated 03.12.2004; the impugned demand is set aside and the appeal is allowed in favour of the assessee.

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