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

GTA abatement entitlement available only if supplier hasn't taken CENVAT credit; require declarations and consignment proof.
Entitlement to the GTA 75 percent abatement requires that the GTA has not availed CENVAT credit of inputs, input services, or capital goods, demonstrated by a supplier declaration on letterhead or consignment note/invoice. If such proof exists, the taxable value should reflect the abatement rather than full gross receipts. Showing the full value in ST 3 may be a clerical mistake that can be corrected by producing consignment notes, trial balance entries and supplier declarations to substantiate the abated liability and limit tax and interest exposure.