2009 (8) TMI 407 - AT - Service Tax

Tribunal Upholds Decision on Notification Compliance

The Tribunal upheld the Commissioner (Appeals) decision, allowing the respondent's appeal based on declarations provided by the appellants regarding ... Transport of goods services- Notification No. 32/2004-ST, dated 3.12.2004 and 12/2003-ST,dated 20.06.2003- Assessee was a recipient of services of ‘Goods Transport Agency’. It availed benefit of Notification No. 32/2004-ST, dated 3.12.2004 and filed declaration from transporter, on plain paper, consignment notes and on letterheads, that transporters had not availed any credit on inputs/capital goods nor had taken benefit of Notification No. 12/2003-ST, dated 20.06.2003. Adjudicating authority denied the said benefits. Commissioner (Appeals) allowed benefit of Notification No. 32/2004-ST, dated 3.12.2004 on the ground that conditions of said notification had been complied with. Held that- no infirmity in the order of Commissioner (Appeals), thus the appeal of revenue is rejected. Issues:Interpretation of Notification No. 32/2004-ST regarding declarations on consignment notes for availing service tax benefit.Analysis:The case involved a dispute regarding the interpretation of Notification No. 32/2004-ST concerning declarations on consignment notes for availing the benefit of service tax. The Commissioner (Appeals) allowed the respondent's appeal based on the declarations provided by the appellants. The appellants had submitted declarations obtained from service providers during a personal hearing, clarifying that they had furnished certificates on plain paper from transporters. The impugned order noted that the appellants had produced some certificates from goods transport agencies on plain paper, along with declarations contained on consignment notes themselves. The Commissioner (Appeals found that the wording of the declarations covered all transport documents till the date of issue, substantially complying with the conditions of the notification. The Tribunal referred to a previous case where a similar issue was settled in favor of the assessee, emphasizing that the condition of the notification had been fulfilled substantially, albeit belatedly. The Tribunal found no infirmity in the view adopted by the Commissioner (Appeals) and rejected the Revenue's appeal, disposing of the stay petition as well.This judgment highlights the importance of complying with the specific requirements of notifications for availing tax benefits. It underscores the significance of providing necessary declarations to substantiate claims and the implications of fulfilling conditions belatedly. The decision also emphasizes the consistency of judicial interpretations in similar cases, reinforcing the principle of precedent in tax matters.