“With effect from 1.3.2008, taxable service in the nature of transport of goods by road services excluded from the definition of output service”
This express exclusion was introduced in order to specifically provide that Cenvat credit cannot be used to discharge service tax under the category ‘GTA’. In other words it should be paid other than thru Cenvat Credit account. (For example in Cash)
Because if GTA is considered as output service and if a manufacturer is allowed to pay the service tax on GTA through his accumulated Cenvat Credit and the same is once again availed as Cenvat Credit by him, then there is no revenue to the Government. Then it would be only a book exercise.
Please give me brief descripttion about above topic of Goods Transport Agency with proper example
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