Service Tax - Goods Transport Agency . Query

[Ashok Chopra]

Dear Sir,

I have received GTA service for Rs. 13,56,384/- during September, 2012 to March, 2013.
Without availing abatement i debited 12.36 percent service tax in CENVAT Register, which comes to Rs. 167649/-
Audit Party taken objection and asked me to deposit entire amount of Rs. 167649/- through Challan
My contention is I was entitle was abatement of 75 percent and if i would have taken benefit of abatement my liability was at the rate of 3.09 percent which comes to Rs. 41913.00.
I deposited Rs. 41913/- alongwith upto date interest Rs. 7985/- through Challan.
Now the objection of Audit party is I have shown entire amount i.e. Rs. 167649/- in ST-3, hence no abatement is applicable to me and i am being forced by them to deposit balance amount of Rs. 125736/- alongwith interest through Challan.
Please guide accordingly, if possible please provide me any citation/notification/clarification etc. in this regard.

Thanks and regard

Ashok Chopra

AI Summary

Service Tax Dispute: User Challenges Full Payment Demand After Clerical Error in GTA Services, Citing Abatement Eligibility A user sought advice on a service tax issue involving Goods Transport Agency (GTA) services. They mistakenly debited a 12.36% service tax without availing a 75% abatement, resulting in an audit objection demanding full payment of Rs. 167,649. The user argued their liability should be Rs. 41,913 after abatement, which they paid with interest. Respondents advised obtaining a declaration from the GTA to validate abatement eligibility and suggested proving the clerical error in reporting to the audit party. They referenced specific notifications for abatement and exemption to support the user's case.