exemption under notf.no.32/2004 ST dt.03-12-2004

[Guest]

previously we were enjoning exemption under notification no. 32/2004-ST dt.03-12-2004 by claming abatement of 75% of the value of the taxable service provided as G.T.A.  At that time we were not  registered with centeral excise as our turnover was below 1.5 caror.But we were registered with service tax for GTA.

Now we are also registered with centeral excise and taking credit of CENVAT on input raw materials.

please inform whether we can now enjoy exemption under notification no. 32/2004-ST dt.03-12-2004 or not.

[YAGAY andSUN]

Yes, you can enjoy the exemption undernotification no. 32/200 dtd 03-12-2004 as declaration not mandatory for abatement. Commissioner of C.Ex., Patna vs. H.T.Media [2011 (23) S.T.R. 451 (Pat.)

 

 

[NEERAJ KUMAR, RANCHI]

Dear Mr Jain,

You can still avail the abatement, it is not exemption as said in you query it is abatement infact. The only condition is that if you take the abatement you can not pay the tax liability through cenvat in this regard. That means you have to pay through cash.

 

[Guest]

Dear After deposit the service tax on freight inward/outward [on 25% amount] , can we get credit of such service tax amount & can be utilised for payment of excise duty payable.

AI Summary

Abatement for GTA services remains available despite central excise registration; cannot discharge tax liability using CENVAT credit. Abatement for Goods Transport Agency services under notification 32/2004-ST remains available despite subsequent central excise registration and CENVAT credit. The abatement is a valuation concession, not an exemption, and does not require a declaration. Electing the abatement precludes using CENVAT credit to discharge the related service tax liability, which must be paid in cash. A separate query concerns whether service tax paid on freight may be taken as credit for excise liability.