Double taxation barred for goods transport agency service tax when tax was already paid by the service provider.

Service tax on goods transport agency services could not be demanded again from the appellant where the tax, with interest, had already been paid by the service provider for the same transportation amount. The CBEC clarification recognised that once service tax on a consignment is paid or payable by the person liable, the same amount should not be recovered from another person. On these facts, enforcing the balance demand would amount to double taxation, so the demand was unsustainable and was set aside in favour of the assessee.

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Issues: Whether service tax demand could be sustained against the appellant for goods transport agency services when the tax on the same transportation amount had already been paid by the service provider, so as to avoid double taxation.

Analysis: The appellant was contesting only the balance demand, while the records showed that the goods transport agency had already deposited the tax along with interest in respect of the same amount. The CBEC clarification stated that if service tax due on transportation of a consignment has been paid or is payable by the person liable to pay it, the same amount should not again be charged from any other person. On these facts, the demand against the appellant would result in double taxation and could not be sustained.

Conclusion: The demand was unsustainable and was set aside; the issue was decided in favour of the assessee.

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