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2017 (9) TMI 890 - AT - Service TaxTransport of Goods by Road (GTA) Service - abatement - N/N. 32/2004-ST dated 03.12.2004 - whether appellants are eligible to utilize Cenvat credit to pay the service tax under GTA services? - Held that: - There is no provision in the Cenvat Credit Rules which prohibit the utilization of Cenvat credit to discharge service tax liability under GTA services. Therefore we find the Commissioner (Appeals) has rightly held this issue in favour of the appellants. The appellant is eligible to pay service tax as a recipient and they are eligible for abatement and the appellants have rightly paid 25% service tax on the freight paid. It is pertinent to state that w.e.f. 1-1-2010 both the conditions (i) and (ii) stipulated under the proviso to the said notification were deleted and the abatement is applicable without any conditions. In view of foregoing discussion, we hold that appellants are eligible for the benefit of exemption Notification No. 32/2004. Therefore, question of demanding differential service tax and imposition of penalty does not arise. Appeal dismissed - decided against Revenue.
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