2025 (4) TMI 1327

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....2. The facts of the case are as under: - (i) The appellant are engaged in the manufacture of Soaps, OSAA and Glycerine falling under Chapters 34, 15 and 38 respectively, for manufacture of which the appellant have their factory inter-alia at 63, Garden Reach Road, Kolkata - 700 024. (ii) The appellant avails CENVAT Credit on inputs, capital goods used in the manufacture of the final products. The appellant avails services of Goods Transport Agency (GTA) for inward/outward transportation of the materials/goods. In all such cases, the appellant pays Service Tax under reverse charge mechanism in terms of Section 68(2) read with Rule 2(1)(d)(v) of the Service Tax Rules, 1994 read with Notification No. 35/2004-S.T. dated 03.12.....

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.....5/1/2007-ST, dated 12.3.2007 clarifies that such abatement is available not only to GTA, but also to the person who is made liable to pay the service tax on GTA services; (iii) For non-declaration of non-availment of CENVAT credit on inputs or capital goods and/or non-availment of abatement under Notification No. 12/2003-S.T. dated 20.06.2003 on the Consignment Notes, credit is not deniable; (iv) The bills/letters issued by the GTA bear the requisite information, which would suffice the requirement of the aforesaid Notifications; (v) It is a settled position of law that abatement of 75% is available to consignor or consignee who pays service tax on GTA service and declaration by GTA on Consignment Notes based on ....

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.... above submissions, the Ld. Counsel for the appellant prayed for allowing their appeal. 6. On the other hand, the Ld. Authorized Representative of the Revenue supported the impugned order. 7. Heard the parties and considered their submissions. 8. The short issue involved in the matter is as to whether 75% abatement of freight paid to GTA under Notification No.32/2004-S.T. dated 03.12.2004 is available only to the GTA or to the appellant which has discharged the Service Tax under reverse charge mechanism under Rule 2(1)(d)(v) of the Service Tax Rules, 1994. 8.1. We find that the said issue has been examined by the Tribunal in the case of Sandoz P. Ltd. v. Commissioner of C.Ex., Raigad [2014 (33) S.T.R. 424 (Tri. - Mum.)] wherein it ....

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....n abatement of 75% in taxable service of goods transport by road is available on the condition that the goods transport agency has not availed credit on inputs and capital goods used for providing taxable service and has also not availed benefit of notification No. 12/2003-Service Tax, dated 20-6-2003 (vide Notification No. 32/2004-Service Tax, dated 3-12-2004). It has been requested that in cases where liability for tax payment is on the consignor or con-signee, the procedure as to how it should be confirmed by such consignor or con-signee that the goods transport agency has not availed credit or benefit of notification No. 12/2003-Service Tax may be prescribed. In such cases it is clarified that a declaration by the goods transport agency....