Service Tax Goods Transport by Road

We are manufacturer of Pharmaceuticals Product.

We are clearing two types of finished goods,

A.                Self Manufactured Goods which manufactured in out plant.

B.                 Third party purchased goods which received from other manufacturer (from various state).

We dispatched both the finished goods to….

a.                   Super Stockiest

b.                  Consignment Agent

c.                   Branch Transfer

My query is regarding Service Tax - Goods Transport by Road.

We are falling in seven categories for paying service tax GTA.

To availing CENVAT credit of service tax (GTA) , here is condition that…

“Almost all the consignors and consignees, who are paying service tax, as per the above provisions of the Service Tax Rules have been paying service tax only on 25 % of the freight amount, as per Notification 32/2004, after ensuring that the GTA has not availed any credit on inputs and capital goods for rendering the service.  Govt  finally had come up with a 37B order to clarify the issue  but it is not understood why it took so long .”

In our case it difficult to mention above condition in LR copy of all the transporter.

Pl Guide me that our procedure is correct or to be corrected. If required to be correct pl suggest where to be correct.

Our procedure is that…..

A.

Self manufactured goods (for coming) :

Paying service tax on 100 % Freight amt. and availing Credit.

Self manufactured goods (for out going):

Paying service tax on 100 % Freight amt. and availing Credit in case of Branch Transfer and consignment Agent and not availing for Super Stockiest.

B.

Third Party Purchased Goods (for incoming & Outgoing) :

Paying service tax on 25 % Freight amt. and not availing Credit.

Local authority (service tax) is taking objection that you can not accept double standard of abatement 75%.

I hope you all are guide me through your valuable knowledge.    

Thanks