2017 (9) TMI 890

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....rough Cenvat account and also claimed abatement of 75% of freight amount in terms of Notification No. 32/2004-ST dated 03.12.2004 for determining their liability under this category. The department was of the view that they are not eligible for abatement and also that Cenvat credit cannot be utilized for discharging service tax liability under reverse charge mechanism. SCN was issued raising above allegations and proposing demand, interest and for imposing penalties. After adjudication, original authority confirmed the demand along with interest and imposed penalty. On appeal, the Commissioner (Appeals) set aside the demand raised on account of wrongful utilisation of Cenvat credit, but however upheld the denial of exemption under Notificat....

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....scharge service tax liability under GTA services. Therefore we find the Commissioner (Appeals) has rightly held this issue in favour of the appellants. The appeal filed by the department is devoid of merits hence requires to be dismissed, which we hereby do. The second issue is settled by the decision the case of SNI industries and the relevant portion of the said decision is reproduced as under:- "6. Heard both sides. We have carefully considered the submissions and also perused the records. The short issue in these appeals is denial of abatement of 75% availed under Notification 32/2004-S.T., dated 3-12-2004. On perusal of the SCN, OIO and the impugned orders-in-appeal, we find that the assessees engaged individual truck operator/owner....

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....overnment of India in the Ministry of Finance (Department of Revenue) No. 12/2003-Service Tax, dated the 20th June, 2003 [G.S.R. 503 (E), dated the 20th June, 2003]. 2. This notification shall come into force on the first day of January, 2005. [Notification No. 32/2004-S.T., dated 3-12-2004]" The proviso to notification stipulates that this exemption is not applicable if the service provider has availed input and capital goods credit for providing GTA service and they should not have availed Notification 12/2003. We find that in the present case the service providers are the transport operators. On perusal of payment vouchers dated 25-4-2005, 3-6-2005 and 26-8-2006 issued by the appellants to various individual truck owners, we fin....