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2018 (2) TMI 928

GTA service - N/N. 35/2004-ST, dated 03.12.2004 - Department took the view that notification exemption is not available to appellant as there was no evidence to show that the conditions of the notification were fulfilled - Held that: - Notification No. 32/2004-ST restricted the service tax liability on taxable value in respect of services provided by Goods Transport Agency (GTA) to 25% of the gross amount charged. This notification was rescinded w.e.f. 01.03.2006 by notification No. 2/2006-ST, d .....

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decided in favor of appellant. - Appeal No. ST/811/2009 - Final Order No. A/31918/2017 - Dated:- 15-11-2017 - Mr. M.V. Ravindran, Member (Judicial) And Mr. Madhu Mohan Damodhar, Member(Technical) Shri G. Prahlad, Advocate for the Appellant Shri Tarun Kanti Basu, Asst. Commissioner, AR for the Respondent ORDER [ Order Per : Madhu Mohan Damodhar ] The facts of the case are that M/s VijaiBhavani Power Tech Private Limited, Gollapalem, the appellants herein, are registered manufacturers of excisable .....

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er dated 05.12.2007, dropped the proceedings in the matter extending the benefit of exemption to appellant, relying on the undertaking letters furnished by the transporters of the appellant to the effect that they have not availed the credit of duty on inputs and capital goods used for providing such taxable service and also that they have not availed benefit of notification No. 12/03-ST, dt. 20.06.2003. However, a revision notice was issued on 18.03.2008, under section 84 of the Finance Act, 19 .....

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. Advocate further submits that the Board vide circular No. 137/154/2008-CD.4, dated 21.08.2008 has clarified that benefit of availment of abatement may also be extended in past cases if the tax payers produce a general declaration from GTA to the effect that neither credit on input and capital goods used for provision of service has been taken nor the benefit of Notification No. 12/2003-ST has been taken by them. In the case in hand, such declarations have been submitted and hence denial of not .....

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le service provided by Goods Transport Agency to any person . 7. In a letter No. 6/2005-TRU, dt. 27.07.2005, the CBEC inter-alia clarified that in cases where liability for tax payment in respect of GTA services is on the consignor or consignee, a declaration by GTA in the consignment note issued, to the effect that neither credit on inputs or capital goods used for provision of service has been taken nor the benefit of notification No. 12/2003-ST has been taken by them, would suffice for the pu .....

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taken by them. The said circular is reproduced below: F. No. 137/154/2008-CX.4 Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs Dated August, 21, 2008 Subject : Service Tax GTA Certain further clarification in respect to clarification issued vide circular No. 5/1/2007-ST, dated 12.03.2007 regarding exemption under notification No. 32/2004-ST dated 03.12.2004 reg. 01. It may be recalled that a dispute had arisen whether or not the persons other tha .....

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ts of CENVAT Credit or benefit of notification No.12/2003-ST. In this regard, vide Para 31 of the circular No.B1/6/2005-TRU dated 27-7-05, it was clarified by the Board that such a declaration from the GTA on the consignment note issued, tothe effect that neither credit on input or capital goods used for the provision ofservice has been taken nor the benefit of notification No.12/2003-ST has beentaken by them may suffice for the purpose of availment of abatement by personliable to pay service ta .....

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f CBEC and in particular the circular No. 137/154/2008-CD.4, dated 21.08.2008, it is but evident that even for the past cases before the extension of benefit of 75%, abatement to GTA services unconditionally (by notification No. 13/2008, dated 1.3.2008), the benefit of such abatement will be available to the appellant without requirement of any specific endorsement on every consignment note, but merely on general declaration from GTA. In the instant case, from the facts it is seen that the appel .....

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can they add/subtract conditionalities thereto/ there from. e) In a landmark judgment, Hon ble Apex Court in the case of Union of India vs. Inter Continental (India) [2008(226) E.L.T 16(S.C), upheld the judgment of Hon ble High Court of Gujarat holding that the department by issuing a circular subsequent to the notification could not add new conditions to the notification thereby restricting the scope of exemption notification or whittling it down. f) In the case of Mutual Industries Limited vs. .....

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