2014 (2) TMI 711

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.... factory and paid service tax on the same as service recipient. The service tax was paid by availing 75% abatement of freight charges in terms of the exemption notification no.32/2004-ST dated 3.12.2004. They also took Cenvat credit of the GTA service availed by them for transportation of inputs to their factory. A show cause notice dated 16.4.2007 was issued to the respondent for denial of exemption notification no.32/2004-ST dated 3.12.2004 and its successor notification no.1/2006-ST on the ground that the respondent wrongly availed this abatement as they have availed Cenvat credit of the service tax paid on the input services received by them. Accordingly, the show cause notice demanded service tax of Rs.1,22,418/- from the respondent al....

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....otification no.32/2004-ST and its successor notification no.1/2006-ST a declaration by the GTA service provider declaring that no Cenvat credit has been availed by him is a must and such declarations have not been produced and hence, the impugned order extending the benefit of above mentioned notifications to the respondent is not correct. 4. Ms. Rinky Arora, Advocate, ld. Counsel for the respondent defended the impugned order and emphasized that the requisite declarations by the transporters regarding non-availment of Cenvat credit are on record and that there was no such allegation even in the show cause notice. She, therefore, pleaded that there is no infirmity in the impugned order. 5. We have considered the submissions from both ....

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....004, thus the party has wrongly availed 75 per cent abatement in payment of service tax on inward service during the period of March to June, 2006 and short paid service tax Rs.1,22,418.00, Service tax, Rs.1,19,886.00 plus Edu. Cess Rs.2,532,00. 7. We do not find any allegation in the show cause notice that the GTA service provider has not given the required declaration regarding non-availment of Cenvat credit by them. The ground on which the abatement under notification no.32/2004-ST and 1/2006-ST is sought to be denied in the notifications is absolutely incorrect, as 75% abatement under these notifications is subject to condition that Cenvat Credit of inputs on capital goods or inputs or output services used in providing the GTA Servic....