GTA - Exemption for availing cenvat credit

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Under GTA category, if the liabilty to deposit tax is of consignee or consigner whether the provisions of exemptions of service tax on 75% of freight amount is not avilable? we have received show cause notice from service tax department which says that such benefit, of levy of service tax on 25% of freight amount, is not avilable if the payment of service tax is made by consignee/consignor and not by transport agency.

AI Summary

Discussion on 75% Abatement for CENVAT Credit in GTA: Consignee/Consignor Can Claim if Conditions Met A query was raised regarding the exemption for availing CENVAT credit under the Goods Transport Agency (GTA) category, specifically whether the 75% abatement on service tax for freight is available when the consignee or consignor pays the tax instead of the transport agency. The discussion includes replies asserting that the 75% abatement is indeed available to the consignee or consignor, referencing a Chief Commissioner's meeting and a DGST letter. It is suggested that the department's demand is unfounded and that the abatement is valid if the GTA provides a declaration about not availing CENVAT credit on capital goods and inputs.