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2023 (12) TMI 679 - AT - Service TaxNon-payment of service tax - reverse charge mechanism - While quantifying the demand, the abatement available has not been considered - revenue neutrality - HELD THAT:- The Tribunal in the case of ARANI AGRO OIL INDUSTRIES LTD. VERSUS COMMR. OF C. EX., VISAKHAPATNAM [2011 (1) TMI 715 - CESTAT, BANGALORE] has gone into this issue and has held the benefit is denied for the reason that declaration of GTA as regards not availing the Cenvat credit was not available on each consignment note. We find that there is no such condition in the notification. Notification benefit should be allowed also for the period after issue of Circular based on the consolidated declaration obtained from GTA. The Circular of CBEC cannot prescribe a condition not present in the Notification. In the circumstances, we find that the impugned order is not in accordance with law. Therefore, as per the ratio of this case law, the Appellant would be eligible for abatement of 75% of the total freight value. Accordingly, as contended by the Appellant, the total Service Tax payable would amount to Rs. 26,43,025/- after considering this abatement. There is no dispute that the Appellant has paid Rs. 20,39,182/- along with interest of Rs. 15,79,196/-. When the issue is that of Revenue neutrality, in such cases, the question of suppression does not arise and it is held that on this count the balance demand amount of Rs. 6,03,843/- is liable to be set aside. The appellant is eligible for 75% abatement while the demand is quantified - Service Tax of Rs. 20,26,194/- along with interest of Rs. 15,29,196/- is not being disputed by the appellant and hence the same is being taken as their part discharge of the net Service Tax liability of Rs. 26,43,025 - For the balance amount of Rs. 6,03,843/- we allow the Appeal in view of the Revenue Neutrality - interest and penalty confirmed in the OIO are set aside. Appeal disposed off.
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