Manpower recruitment service tax demand fails where tax was already paid by the recipient or provider, avoiding double taxation.

Under Notification No. 30/2012-ST, 75% of the service tax on manpower recruitment agency service was required to be paid by the recipient. Where the recipient had already discharged the appellant's share in one instance, and in another the service provider had paid the entire tax, a further demand from the appellant would amount to double taxation. On that basis, the demand for service tax was held unsustainable.

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Issues: Whether the demand of service tax on manpower recruitment agency service was sustainable when the service recipient had paid the appellant's share and, in another instance, the service provider had already discharged the entire tax.

Analysis: Under Notification No. 30/2012-ST dated 20.6.2012, the recipient was required to pay 75% of the service tax on manpower recruitment agency service. The appellant had paid the tax upon being pointed out in one instance, and in the other instance the service provider had paid 100% of the tax. In such circumstances, insisting on payment again from the appellant would result in double taxation, which is not permissible. The demand therefore could not be sustained.

Conclusion: The demand of service tax was unsustainable and the appellant succeeded.

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