MANU/DSTX/0046/2004

Ministry: Ministry of Finance

Department/Board:Central Board of Indirect Taxes and Customs

Notification No:32/2004

Date: 03.12.2004

Referred IN

Subject: Goods and Services Tax

Subject: Excise

Exemption to Taxable Service Provided in Relation to Transport of Goods by Road in a Goods Carriage

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a goods transport agency to a customer, in relation to transport of goods by road in a goods carriage, from so much of the service tax leviable thereon under section 66 of the said Act, as is in excess of the service tax calculated on a value which is equivalent to twenty-five per cent. of the gross amount charged from the customer by such goods transport agency for providing the said taxable service:

Provided that this exemption shall not apply in such cases where

(i) the credit of duty paid on inputs or capital goods used for providing such taxable service has been taken under the provisions of the Cenvat Credit Rules, 2004; or

(ii) The goods transport agency has availed the benefit under the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. l2/2003-Scrvice Tax, dated the 20th June, 2003 {G.S.R. 503 (E), dated the 20th June, 2003].

2. This notification shall come into force on the first day of January, 2005.

Sd/-

(V. Sivasubramanian)

Deputy Secretary to the Government of India