The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) while allowing the benefit of the 75% Abatement to the transport agency held that cenvat credit non-availment declaration given generally or on consignment note does not matter.
The bench of Ramesh Nair (Judicial Member) and C L Mahar (Technical Member) has observed that the adjudicating authority did not accept the declaration only on the ground that the declaration should be made on the body of the consignment note.
The tribunal disagreed with the contention of the adjudicating authority as well as the Commissioner (Appeals) that the declaration is only to convey the fact that the transport agency is not availing the Cenvat credit as well as the benefit of Notification No.12/2003-S.T. dated 20.06.2003. It does not make any difference whether the declaration given by the transport agency is general or it is given on the consignment note. Moreover, the department could not bring any evidence that such declarations are false or the transport agencies have availed the Cenvat credit and Notification No.12/2003-S.T.
Background
The appellant/assessee raised the issue whether the appellant while availing the abatement of 75% from the gross amount in respect of goods transport service under Notification No.32/2004- ST has violated the condition that Cenvat credit and benefit of Notification No.12/2003-ST had not been availed when the appellant have produced a general declaration from transport agency to this effect.
A general declaration given by the transport agencies are sufficient as they have clearly declared that transport agencies have not availed either the Cenvat Credit or the benefit of Notification No. 12/2003- S.T. Therefore, on that compliance the benefit of 75% abatement in terms of Notification No. 32/2004-S.T. cannot be denied.
Notification No. 32/2004-S.T. prescribes the condition that the transport agencies should not avail the benefit of Cenvat credit and the benefit of Notification No. 12/2003-S.T in order to extend the benefit of Notification No.32/2004-S.T. to the service recipient who is liable to pay the service tax on reverse charge mechanism.
The assessee-transport agencies has given the declaration for compliance of the condition.
The adjudicating authority did not accept the declaration only on the ground that such declaration should be made on the body of the consignment note.
Conclusion
The tribunal while allowing the appeal held that the appellant has correctly availed the abatement of 75% under Notification No.32/2004-S.T.
Case Title: Ram Ratna Wires Ltd. Versus Commissioner of C.E. & S.T.-Daman
Case No.: Service Tax Appeal No. 10381 of 2018 – DB
Date: 18.09.2024
Counsel For Appellant: Dhaval Shah
Counsel For Respondent: Anand Kumar
