2019 (7) TMI 905

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....e Tax Appellate Tribunal South Zonal Bench (hereinafter referred to as 'CESTAT') on 03.03.2011, whereby the learned Tribunal dismissed the appeals filed by the assessee and held that the assessee was not entitled to exemption under Notification No.32/2004 ST dated 03.12.2004 to the extent of abatement of 75% from the gross freight value in the absence of any declaration furnished by the transport agencies from whom the services in question were availed by the assessee, to the effect that the transport agents had not taken CENVAT credit on inputs / capital goods. The relevant portion of the order of the CESTAT is quoted below for ready reference. "3. We find that the abatement of 75% from the gross freight value under Notification ....

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....on No.32/2004 dated 03.12.2004 is quoted below for ready reference. " Notification : 32/2004-S.T. Dated 03-Dec-2004 Service tax payable on 25% of the gross amount charged by Goods Transport Agency (w.e.f.1-1-2005) In exercise of the powers conferred by sub-section(1) of Section 93 of the Finance Act,1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a goods transport agency to a customer, in relation to transport of goods by road in a goods carriage, from so much of the service tax leviable thereon under Section 66 of the said Act, as in excess of the service tax calculated on a value which is equivalent to twenty five per cent ....

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....power conferred under Section 37B of the Central Excise Act, 1994, as made applicable to Service Tax by Section 83 of the Finance Act, 1994, the Central Board of Excise and Customs considers it necessary, for the purpose of uniformity with respect to levy of service tax, to issue the following orders:- 2. In terms of Notification No.32/2004-S.T., dated 03.12.2004 (rescinded on 01.03.2006) and No.1/2006-S.T., dated 01.03.2006, the Central Government has exempted the taxable service provided by a goods transport agency to a customer, in relation to transport of goods by road, in a goods carriage, from so much of service tax leviable thereon as is in excess of the service tax calculated on the value which is equivalent to twenty five percent....

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....laration by the service provider, in all such cases, on the consignment note, to the effect that the conditions of the aforesaid exemption notification have been satisfied, would be sufficient for availing of the benefit under the said notifications. Opinion of Law Ministry has also been sought in this matter. Law Ministry has concurred with the above views of the Department. 5. Therefore, in all such cases, where the above procedure has been followed, no demand notice may be issued on the basis of objection raised by the C&AG office, and all pending matters may be decided accordingly. Past instructions, circulars and orders on the issue stand suitably modified. 6. Suitable Trade notices may be issued for the information of trade. 7. ....