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July 2011

(2011) 22 STR 282 (Tri.-Mumbai) — Indian Oil Corporation Ltd. v. CCE, Mumbai-II.

By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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Goods Transport Agency (GTA) service — Benefit of abatement of 75% under Notification No. 1/2006- ST cannot be denied to the appellant.

Facts:
The appellant being a service recipient has availed CENVAT credit on inputs, capital goods and input services and had taken benefit of Notification No. 1/2006. Benefit of Notification No. 1/2006-ST and 12/2003-ST was denied to the appellants on the ground that:

? Inadmissible exemption was availed under Notification No. 1/2006-ST.

? As per the Notification, 75% abatement of the taxable value under GTA service can be availed on the condition that the service provider has not availed CENVAT credit on inputs, capital goods and input services used for providing the service.

Held:
The Tribunal held that the restriction as to admissibility of abatement with respect to non-availment of CENVAT credit applies to the service provider. The assessee being service recipient of GTA service is entitled to abatement and hence, appeal was allowed.

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