GTA abatement declarations supported waiver of pre-deposit and stay of service tax recovery in appeal.

In service tax disputes concerning GTA abatement, a general declaration from the service provider that no input or capital goods credit was availed and that the benefit of Notification No. 12/2003-S.T. was not taken can support extension of the abatement. Where such a declaration is produced and Board clarification recognises its use in past cases, the assessee may establish a strong prima facie case for interim relief. On that basis, waiver of pre-deposit was justified and recovery of service tax and penalty remained stayed during the appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery were warranted where the service recipient produced the GTA declaration regarding non-availment of input or capital goods credit and non-availment of the benefit under Notification No. 12/2003-S.T.

Analysis: The Applicants produced a declaration from the service provider stating that no credit on input or capital goods used for providing the service had been availed and that the benefit of Notification No. 12/2003-S.T. had not been taken. The Board's clarification further stated that the benefit of abatement could be extended in past cases where a general declaration of that nature was produced. On that basis, the Applicants were found to have a strong prima facie case.

Conclusion: Waiver of pre-deposit was granted and recovery of service tax and penalty was stayed during pendency of the appeal in favour of the Appellant.

Ratio Decidendi: In service tax matters involving GTA abatement, a general declaration from the service provider that no input or capital goods credit and no benefit of Notification No. 12/2003-S.T. had been taken can justify extension of abatement and consequential waiver of pre-deposit.

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