TaxTMI 
TaxTMI 
One of my client is GTA. He is charging Service tax to his clients who are mostly Sole Prop. concerns. He is not availing any CEnvat Credit. However in a recent inspection, he has been threatened that since has not printed the line that he is not availing the CENVAT credit on the CN's, he is liable to pay service tax on the full amount, and he shall not be eligible for 75% abatement as he is avaling. What is the remedy available?
Liability of service tax - without availing abatement
15 Sep 2008 
3 Replies 
1621 Views Asked by
Guest 
Cenvat credit restriction: GTAs retain concession eligibility when non availment is demonstrable despite absent consignment declarations.
If a GTA proves non availment of CENVAT credit through records, books or confirmations from consignors/consignees, authorities cannot deny abatement solely for lack of a printed declaration; a statutory amendment removed CENVAT availability for GTAs and converted the abatement into an exemption, eliminating the requirement to print the non availment statement on consignment notes. (AI Summary)
If a GTA proves non availment of CENVAT credit through records, books or confirmations from consignors/consignees, authorities cannot deny abatement solely for lack of a printed declaration; a statutory amendment removed CENVAT availability for GTAs and converted the abatement into an exemption, eliminating the requirement to print the non availment statement on consignment notes. (AI Summary)