Service tax double taxation concern supported waiver of pre-deposit and stay where tax had already been paid by transporters.

Prima facie relief was granted in a service tax appeal where the demand was challenged on the ground that tax on the transportation service had already been paid by the transporters. The appellants relied on the CBEC circular stating that service tax should not be recovered again from another person to avoid double taxation, and also submitted that the concern against which the demand had been confirmed was no longer in existence. On these facts, the Tribunal found a prima facie case for interim protection and allowed waiver of pre-deposit and stay of recovery.

---

---

Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery in the service tax appeal.

Analysis: The demand had been challenged on the basis that the tax on transportation service had already been paid by the transporters, and reliance was placed on the CBEC circular indicating that service tax should not be recovered again from another person so as to avoid double taxation. The appellants also pointed out that the concern against which the demand was confirmed was no longer in existence. On these submissions, the Tribunal found a prima facie case in favour of the appellants for interim relief.

Conclusion: Waiver of pre-deposit was granted and the stay petition was allowed in favour of the appellants.

---