Goods transport agency service tax cannot be recovered again from the recipient when the transporter has already paid it.

Where goods transport agency service tax had already been discharged by the transporter and accepted by Revenue, the same levy could not again be demanded from the recipient under reverse charge. The material records, including invoices, challans and certificates, supported the recipient's bona fide belief that no further liability survived. In the absence of suppression or misrepresentation, the extended limitation period was not available and penalty could not be sustained. The analysis therefore treats prior payment by the service provider as defeating a demand on the recipient and rejects penal consequences where disclosure was not shown to be withheld.

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Issues: Whether service tax on goods transport agency services could be demanded again from the recipient when the tax had already been paid by the transporter, and whether the extended period of limitation and penalties were invocable.

Analysis: The liability under Rule 2(1)(d)(v) of the Service Tax Rules, 1994 fastened tax on the person paying freight under reverse charge. However, the invoices, challans and certificates showed that the service tax component had already been discharged by the goods transport agency and accepted by Revenue. In such circumstances, the same tax could not be recovered again from the recipient. The record also supported the recipient's bona fide belief that no further liability survived. Absence of suppression or misrepresentation meant that the extended period could not be invoked and penalty was not sustainable.

Conclusion: The demand was not sustainable against the recipient, and the invocation of limitation and penalties failed. The appeal was allowed.

Ratio Decidendi: Where service tax on goods transport agency services has already been paid by the service provider and accepted by Revenue, the same tax cannot again be demanded from the recipient under reverse charge, and in the absence of suppression the extended period and penalties are not invocable.

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