Double taxation dispute: service tax claim failed where VAT had already been regularly paid on the same goods.

On the undisputed fact that VAT had been regularly paid on the subject goods during the relevant period, a claim for service tax on the same transaction was not sustainable. The analysis turned on the factual basis that the tax liability had already been discharged under VAT, so the service tax demand on the same goods did not arise. The appeal was dismissed.

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Issues: Whether service tax could be claimed on the subject goods for the relevant period when VAT liability had already been regularly paid.

Analysis: The respondent had regularly discharged VAT liability in respect of the subject goods during the relevant period. On that undisputed factual basis, the claim for service tax on the same transaction did not arise.

Conclusion: The claim for service tax was not sustainable in the facts of the case and the appeal was dismissed.

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