TaxTMI 
TaxTMI 
2020 (6) TMI 251
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.... Transport Agency Services under Reverse Charge Mechanism. On the basis of an intelligence, department observed that the appellant is not paying Service Tax in the proper manner. Hence, vide letter dated 03.03.3017 bearing No. V(16)09/antevasion/2245, the appellant was called upon to explain. Being not satisfied with the explanation qua the total carriage inwards charges of Rs. 10,69,397/- during the financial year 2012-13 to 2015-16 short payment of Service Tax to the tune of Rs. 1,38,466/- was alleged. Resultantly, a show cause notice No. 4159 dated 31.05.2017 was served upon proposing the recovery of the aforesaid short paid amount along with the interest at appropriate rate and the proportionate penalty. The proposed recovery was confir....
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....hese arguments, learned D.R. has laid emphasis upon para-8 of the order-under-challenge i.e. Order-in-Appeal No. 460, it is submitted that filing of declaration is necessary in furtherance of Board's order No. 166/13/2006 dated 12/03/2007 as has been issued under Section 37 B of Central Excise Tariff. It is impressed upon that the said order clarifies that though the Central Government has exempted the taxable service provided by a Goods Transport Agency who are customer from so much of Service Tax leviable thereon as is in excess of the Service Tax calculated on the value which is equivalent to 25% of gross amount charged from the customer by such Goods Transport Agency but the said exemption is subject to two conditions, one whereof is ab....
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.... respect to GTA Service is subject to two conditions one being the impugned declaration. However, as pointed out by the learned Counsel for the Appellant and acknowledged by the department, the said notification of 2006 notified in March, 2007 stands amended by virtue of notification No. 13/2008 dated 01.03.2008. The said notification is reproduced as follows : G.S.R. (E)- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on 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 any person in relation to transport of goods by....
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....er words, service tax is required to be paid only on 25% of the freight irrespective of who pays the service tax. Simultaneously, the benefit of Cenvat credit has been withdrawn to GTA service under Cenvat Credit Scheme by deleting the said service from the scope of output service in the Cenvat Credit Rules, 2004. Henceforth, the person who is required to pay service tax under reverse charge method on GTA service can pay service tax on 25% of the freight unconditionally. Recipient of GTA service paying service tax under reverse charge method is no more required to prove non-availment of Cenvat credit by GTA service provider. Both these notifications and classiffication which are subsequent to the notification relied upon by Commissioner A....
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....he year 2012-13 to 2014-15 and on 30% value of services of GTA during the year 2015-16. 6.1 This definition clarifies that the GTA Services stands excluded from the definition of output service w.e.f 01.07.2012. No question of availability of Cenvat credit is any more available to the recipient of GTA Services. The demand of declaration about not availing the Cenvat credit stands redundant in view of the said amendment. 7. Above all, the notifications are extending substantial benefit to the assessee. The same cannot be denied for want of meagre procedural lapse. The above discussion rather clarifies that in the present case there is not even the said procedural lapse. Denying the benefit of the impugned notification for alleging the pay....