Tribunal overturns service tax demand, citing principle against double taxation.

The Tribunal allowed the appeal, setting aside the demand for service tax liability of Rs.40,850 with interest and penalties. The appellant successfully argued that service tax should not be charged from any other person if already paid by the liable party, supported by certificates from transport companies confirming payment of the tax. The Tribunal referenced previous decisions and a CBEC circular to support their ruling, emphasizing the principle of avoiding double taxation.

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Issues:
Service tax liability on outward transportation services not discharged by the appellant.

Analysis:
The appeal was against an order demanding service tax liability from the appellant for outward transportation of goods. The appellant argued that they had paid part of the liability and that the transporters had also paid a portion, as evidenced by certificates provided. The lower authorities confirmed the demands and imposed penalties. The first appellate authority upheld the original order. The appellant cited previous tribunal cases and a CBEC circular to support their claim that service tax liability should not be on the recipient of services. The Assistant Commissioner argued that the evidence provided was not specific enough. The Tribunal noted that the issue to be decided was the service tax liability of Rs.40,850 for outward transportation. Certificates from transport companies confirmed they had paid the service tax, contrary to the lower authorities' findings. The Tribunal found in favor of the appellant, citing previous tribunal decisions and the CBEC circular, which stated that service tax should not be charged from any other person if already paid by the liable party to avoid double taxation. Thus, the appeal was allowed, setting aside the demand for service tax liability of Rs.40,850 with interest and penalties.

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