Goods Transport Agency service tax demand fails where tax was already paid and Cenvat credit was not availed.

Service tax on Goods Transport Agency services was held unsustainable where transporter certificates showed tax had already been discharged and no Cenvat credit had been availed. The Tribunal treated that documentary evidence as sufficient to rebut the demand, and applied its consistent view that the department cannot recover the same tax again from another person when service tax has already been paid, as that would amount to double taxation. On those facts, the assessee was entitled to the benefit of Notification No. 32/2004-ST and obtained relief.

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Issues: Whether the service tax demand on Goods Transport Agency services was sustainable when the transporters furnished certificates stating that tax had already been discharged and no Cenvat credit had been availed, and whether the appellant was entitled to the benefit of Notification No. 32/2004-ST dated 03.12.2004.

Analysis: The transporters' certificates showed that they had not availed Cenvat credit and had not claimed deduction for the cost of goods used in providing the transport service. The Tribunal also noted that, on similar facts, it had consistently held that once tax has already been paid on the service, the department cannot demand the same tax again from another person, as that would amount to double taxation. The documentary evidence produced by the appellant was therefore sufficient to negate the demand raised against it.

Conclusion: The demand was unsustainable and the appellant was entitled to relief.

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