2018 (2) TMI 1443

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....hey were discharging service tax liability on 25% of the total freight charges paid by them, availing benefit of Notification No.32/2004-ST, dated 03.12.2004. Though appellants were not the providers of "Goods Transport by Road Service", they were paying the service tax by virtue of sub clause (v) of clause (d) of sub-rule (1) of Rule 2 of Service Tax Rules, 1994 and as per Notification No.35/2004-ST, dated 03.12.2004, as "person liable for payment of service tax". 3. Department took the view that notification exemption is not available to appellant as there was no evidence to show that the conditions of the notification were fulfilled. Accordingly, show cause notices were issued to appellant. The original authority vide order dated 14.1....

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....rvice tax liability, changed the focus of the exemption from "taxable service provided by a Goods Transport Agency to a customer" to taxable service provided by Goods Transport Agency to any person". 5. In a letter No.6/2005-TRU, dt. 27.07.2005, the CBEC inter-alia clarified that in cases where liability for tax payment in respect of GTA services is on the consignor or consignee, a declaration by GTA in the consignment note issued, to the effect that neither credit on inputs or capital goods used for provision of service has been taken nor the benefit of notification No.12/2003-ST has been taken by them, would suffice for the purpose of availment of abatement by the person liable to pay service tax. 6. After introduction of the Financ....

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...., whosoever pays tax under 'reverse charge method' under the provision of the Service Tax Rules is also eligible for abatement of 75% under the notification No.32/2004-ST dated 3-12-2004 (now replaced by notification No.1/2006-ST. The Board, vide circular No.5/1/2007-ST dated 27-7-2005 had clarified that such persons are also eligible for availing the benefit of the notification, subject to fulfillment of the conditions prescribed therein. There are two conditions for availing the said abatement. One is non-availment of CENVAT credit and second is the non-availment of benefit of notification no.12/2003-ST. 02. After the issuance of the circular, a large number of demand notices were dropped, However, now it has been brought to th....

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....them. 05. The past cases may be decided accordingly. 06. This issues with the approval of the Member (Service Tax)." 8. On appreciating the aforesaid chronological events and various clarifications of CBEC and in particular the circular No.137/154/2008-CDA, dated 21.08.2008, it is but evident that even for the past cases before the extension of benefit of 75%, abatement to GTA services unconditionally (by notification No.13/2008, dated 1.3.2008), the benefit of such abatement will be available to the appellant without requirement of any specific endorsement on every consignment note, but merely on general declaration from GTA. In the instant case, from the facts it is seen that the appellants have obtained such undertaking letters ....