COMMISSIONER OF CENTRAL EXCISE, SALEM Vs. SNA GRANITES

JUDGEMENT

(1.) These appeals by the Revenue are directed against the Final Order Nos. 1751/2009, 1750/2009, 1752/2009 and 1753/2009 respectively dated 12 -11 -2009 passed by the Customs, Excise and Service Tax Appellate Tribunal, Southern Regional Bench, Chennai 600006 [2010 (18) S.T.R. 170 (Tri. - Chennai)]. The respondents/assessees are manufacturers of cut and polished granite monuments and they availed the services of Goods Transport Agencies for the purpose of procuring their raw materials, capital goods and spares thereof and also for onward transportation of their finished goods. The respondents/assessee being a Private Limited Company fell under one of the seven categories of persons as stipulated under Rule 2(1)(d)(v) of the Service Tax Rules, 1994 r/w Notification No. , dated 3 -12 -2004 as persons liable for payment of Service Tax in respect of the Goods Transport Agency Service availed by M/s. SNI Industries and M/s. SNA Granites for the periods between 1 -1 -2005 to 30 -9 -2006. During the aforesaid period, the respondents/assessees paid Service Tax by adopting a lessor value of 25% of the freight amount paid by availing abatement on 75%. On account of this, a show cause notice was issued by the Department stating that assessee is a 100% Export Oriented Unit who are not entitled to claim the abatement and called upon the assessees to show cause as to why the ineligible abatement claimed by them from the actual value of taxable services should not be disallowed and the Service Tax payable on the taxable value availed as ineligible abatement, should not be recovered.

(2.) The assessees submitted their reply stating that the contention of the Department is devoid of any statutory backing and not sustainable in law and further contended that they are entitled to avail exemption under Notification No. , dated 3 -12 -2004 as the Goods Transport Agencies did not avail any credit of the duty paid on the input of capital goods used for providing Goods Transport Agency Services. Therefore, the assessees prayed before the Department to drop the further proceedings.

(3.) The Assessing Officer afforded an opportunity of personal hearing to the assessees but they did not avail the same despite the matter had been adjourned thrice. Therefore, the Authority proceeded to consider on merits and passed the order confirming the demand made in the show cause notice.