Alok Leasing (P) Ltd vs C.C.E.& S.Tax, Allahabad
- CitationService Tax Appeal No.123 of 2010
Ratio decidendi
The rule this decision rests on
Where a Goods Transport Agency, on its own letterhead, certifies that it has not availed credit on inputs or capital goods used in providing the GTA service, that certificate is sufficient compliance with the conditions of the exemption notifications granting abatement, and a GTA service recipient furnishing such a certificate is entitled to the benefit of abated tax liability under those notifications; a revisional authority cannot disallow the abatement on the ground that such declarations are insufficient, where that conclusion is contrary to this principle as laid down in the earlier Tribunal decision in Paliwal Home Furnishing.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Arising out of the order in revision No.(S.Tax No.84/2009) 71 of 2009 dated 4.11.2009 passed by the Commissioner , Central Excise & S.Tax, Allahabad.
For approval and signature:
Honble Mr. Justice G. Raghuram, President
Honble Mr. H.K. Thakur, Technical Member
1 Whether Press Reporter may be allowed to see the Order for publication as per Rule 26 of the CESTAT (Procedure) Rules, 1982?
2 Whether it should be released under Rule 26 of CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3 Whether their Lordships wish to see the fair copy of the Order?
4 Whether Order is to be circulated to the Departmental authorities?
Alok Leasing (P) Ltd. . Appellants
Vs.
C.C.E.& S.Tax, Allahabad .. Respondent
Appearance:
None for the appellants
Present Shri Govind Dixit, A.R. for the Respondent/Revenue
Coram: Honble Mr. Justice G. Raghuram, President
Honble Mr. H.K. Thakur, Technical Member
Final Order No52172/2015.
Per Justice G. Raghuram:
The assessee is in appeal against the Order-in-Revision dated 4.11.2009 passed by the ld. Commissioner, Central Excise and Service Tax, Allahabad. This order confirmed the service tax demand of Rs.45,957/- along with penalty of Rs.50,000/- apart from interest.
2. After a due process, the adjudication order dated 14.11.2007 dropped the demand of service tax on the ground that the assessee had produced declarations from the concerned Goods Transport Agency, on their letterheads, certifying non-availment of any of the benefits which disentitle abatement of tax benefits granted under exemption Notification Nos.32/2004-ST and 35/2004-ST, both dated 3.12.2004. By the impugned order the revisional authority concluded tha declarations furnished by providers of GTA services was insufficient compliance with the conditions of the exemption Notification.
3. The issue is no long res integra. The decision of this Tribunal in Paliwal Home Furnishing vs. C.S.T., Delhi 2011 (22) str 531 (Tri-Del.) ruled that certificates by Goods Transport Agency on their letterheads regarding non availment of credit on inputs or capital goods for providing GTA service is sufficient compliance and a GTA service recipient would be entitled to avail the benefits of abated tax liability, under the relevant Notifications.
4. In the light of the law declared in the decision supra, the impugned order is unsustainable and is accordingly quashed. The appeal is allowed. No costs.
andl
(Justice G. Raghuram)
President
(H.K. Thakur)
Technical Member
scd/
1
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