Prima facie double taxation risk on service tax demand justified unconditional stay of recovery.

Unconditional stay of service tax recovery was granted where the appellant showed a prima facie risk of double taxation on the same service. The broadcasters had already collected service tax on booked time slots, while the appellant had billed clients and discharged tax on commission or separately charged amounts. On that showing, the demand appeared to require recovery twice over on the same transaction, and the matter was treated as needing fuller examination at final hearing. The interim relief therefore protected the appellant from recovery pending detailed scrutiny of the tax liability.

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Issues: Whether the appellant had made out a prima facie case for unconditional stay of recovery of the service tax demand.

Analysis: The appellant had shown that the broadcasters had already collected service tax from it on the booked time slots, while the appellant had in turn billed its clients and discharged service tax on commission or separately charged amounts. The demand, at this stage, appeared to risk recovery of service tax twice on the same service. The order treated the situation as prima facie indicative of a procedural irregularity, warranting detailed examination at final hearing.

Conclusion: Unconditional stay of the demand was granted in favour of the appellant.

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