Notification compliance for GTA services requires fresh verification of evidence before denial of exemption benefit and remand

Benefit of Notification No. 34/04 could not be rejected without fresh examination of the evidence said to show that the GTA service provider had not availed credit on inputs or capital goods, or the benefit of Notification No. 12/03. Affidavits and certificates were produced to support compliance, but the adjudicating authority had not verified this material afresh. The impugned order was set aside and the matter was remanded for reconsideration after verification of the evidence and after granting an opportunity of hearing.

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Issues: Whether the benefit of Notification No. 34/04 could be denied for want of proof that the GTA service provider had not availed credit on input or capital goods or the benefit of Notification No. 12/03.

Analysis: The applicant produced affidavits and certificates from the service providers to support compliance with the notification conditions. The evidence required verification, and the adjudicating authority had not examined it afresh after considering the material produced by the applicant.

Conclusion: The matter required reconsideration by the adjudicating authority after verification of the evidence and after affording an opportunity of hearing. The impugned order was set aside and the case was remanded.

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