THE ANDHRA PRADESH PAPER MILLS LTD. Vs. CCE

JUDGEMENT

(1.) THIS appeal has been filed against the adjudication order Nos. 28 -29/2008(PNR) dt. 15/4/2008 passed by the CCE, Visakhapatnam. We heard both sides.

(2.) THE appellants availed the services of road transport services for transport of the goods manufactured by them. In terms of the Finance Act, they are liable to discharge the service tax liability. They discharged the liability by calculating the service tax at 25% of the total freight charges paid by them in terms of Notification No. 32/2004 -ST dt. 3/12/2004 which provides the said facility on the condition that the said exemption is available in respect of a taxable service provider by a GTA to a customer in relation to transport of goods by road in a goods carriage but not for consignor or consignee of goods who pays the freight. Revenue proceeded against the appellants on the ground that the appellant does not appear to be a GTA as the exemption under Notification No. 32/2004 -ST is meant for a GTA only. The said notification benefit cannot be extended to the appellant. Further, there is no evidence to show that the conditions specified in the Notification No. 32/2004 -ST were fulfilled for allowing the abatement of 75% of the value. It was further stated that the appellants were not issuing any consignment notes for the carriage of the goods. Taking such a view, there was a demand for differential amount of service tax. The show cause notice proposed penal action also. The Commissioner in the impugned order has stated that the appellant had not fulfilled the conditions of Notification No. 32/2004 -ST and therefore they would not be entitled for this benefit. Hence, he confirmed the differential service tax. Interest was demanded under Section 75. However, penalties under Section 75 & 78 were dropped. The appellants are, highly aggrieved over the impugned order. The following submissions were urged by the appellants.

(3.) THE ld. DR reiterated the impugned order.