2008 (9) TMI 261 - AT - Service Tax

Refund claim was filed for the exemption envisaged in Notification No. 32/2004-S.T (providing abatement of 75% from taxable value) which the assessee had not availed while paying the service tax. From a copy of the certificate issued by the transporter of the assessee it appears that the exemption under the Notification was admissible for the transport of the consignment in respect of which excess service tax had been paid by the appellants - it is necessary that the original authority examine the matter afresh appeal allowed by way of remand

Summary

Issues:

1. Rejection of refund claim for excess paid service tax under GTA service category.
2. Eligibility of the appellant for the benefit of Notification No. 32/2004-S.T.
3. Requirement of evidence to substantiate eligibility for the refund claim.

Analysis:

The appeal was filed against the rejection of a refund claim by M/s. T.S.R. & Co. Home Needs (P) Ltd. for an amount of Rs. 9,883, representing excess paid service tax under the GTA service category. The claim for refund was based on the failure to claim abatement of tax due on 75% of the taxable value, as per Notification No. 32/2004-S.T. The exemption provided by this Notification required the service provider not to avail credit of duty paid on inputs or capital goods and the transporter not to avail the benefit under Notification No. 12/2003-S.T. The original authority rejected the claim due to the absence of endorsement on the consignment notes or other evidence supporting eligibility.

The appellants argued that they possessed a certificate issued by the transporter, M/s. Senbgam Lorry Service, supporting their claim for relief. They requested a remand to establish their eligibility for the refund claim. The Revenue did not object to the remand, emphasizing the need for evidence to substantiate eligibility for the benefit of Notification No. 32/2004-S.T.

Upon review, it was found that the appellants were entitled to claim the benefit of Notification No. 32/2004-S.T. The certificate issued by the transporter indicated that the exemption under the Notification was applicable to the transport of the consignment for which excess service tax had been paid. Consequently, the matter was remanded to the original authority for fresh examination. The appeal was allowed, setting aside the orders of the lower authorities, with the direction to dispose of the refund claim in accordance with the law, ensuring the appellants have a fair opportunity to present their case.