Goods Transport Agency classification prevails where consignment notes are issued and tax cannot be levied twice on the same transport service.

Transportation of goods by road accompanied by issuance of consignment notes falls within the statutory concept of Goods Transport Agency service under the service tax regime. The agreements and consignment notes showed that the activity was transport service, not mere hiring of vehicles or supply of tangible goods. Where the same transportation activity had already suffered service tax at the recipient's end under reverse charge, the department could not tax the provider again under a different classification, as that would amount to impermissible double taxation without authority of law.

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Issues: Whether the appellant's activity of transporting goods under the agreements and consignment notes was classifiable as Goods Transport Agency service, and whether the service tax demand, interest and penalties under the impugned order could survive.

Analysis: The agreements showed that the appellant was engaged to transport goods by road using its own vehicles and crew, while issuing consignment notes for the consignments handled. The decisive feature was the issuance of consignment notes, which brought the activity within the statutory concept of Goods Transport Agency service under the service tax regime. The contract terms and the issued consignment notes supported transportation service rather than hiring of vehicles or supply of tangible goods. The record also showed that service tax on the same transportation activity had already been discharged by the service recipient on reverse charge basis. In such circumstances, the same transaction could not be subjected to tax again in the hands of the service provider under a different classification, as that would amount to impermissible double taxation and offend the constitutional prohibition on taxation without authority of law.

Conclusion: The appellant's activity was correctly treated as Goods Transport Agency service, and the demand raised under the impugned order could not be sustained. The demand of interest and penalties also failed along with the principal demand.

Final Conclusion: The impugned order was set aside and the appellant obtained complete relief in the appeal.

Ratio Decidendi: Where transportation of goods by road is accompanied by issuance of consignment notes and the same service has already suffered tax under the proper statutory category at the recipient's end, the department cannot reclassify the transaction and levy service tax again on the provider under another heading.

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