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November 2015

2015 (39) STR 1034 (Tri. –Del.) Commissioner of C.Ex. Allahabad vs. Sangam Structurals Ltd.

By Puloma Dalal
Jayesh Gogri
Mandar Telang Chartered Accountants
Reading Time 1 mins
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CBEC circular, prescribing declaration by GTA on consignment note that notification conditions are fulfilled is beyond the requirement of exemption notification.

Facts:
Notification No. 32/2004-ST dated 3rd December, 2014 conferred exemption to GTA services subject to nonavailment of CENVAT credit on inputs or capital goods by transporter and non-availment of benefit of Notification No. 12/2003-ST dated 20th June, 2003. In this context, CBEC issued clarification that the consignment note would state compliance made of conditions specified in Notification No. 32/2004. The respondents furnished declaration as per aforesaid notification from transporters before Commissioner (Appeals). Further, sample consignment notes containing required declaration were also submitted.

Held:
There was no evidence that any such credit or the benefit of 12/2003-ST was availed. Submission of declaration from transporters at the stage of commissioner (Appeal) was sufficient compliance of notification. Furthermore, conditions prescribed by the CBEC circular seemed to go beyond the requirement of the exemption notification. It is settled law that CBEC circular cannot restrict or expand the amplitude of an exemption notification nor can they add/subtract conditionalities thereto/therefrom.

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