GTA - Exemption for availing cenvat credit

[Asked by Guest]

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

GTA abatement available to consignor or consignee even if they discharge tax, subject to non availment of cenvat.
The abatement for Goods Transport Agency services is available to consignor or consignee even when they discharge the service tax, provided the transport provider has not availed cenvat credit on capital goods and inputs and furnishes a declaration of non availment and non option for other deductions.