2009 (1) TMI 219 - AT - Service Tax

Double collection of service tax appellant submitted that the service tax amount demanded from that has been already been paid by the transporters but the demand has been confirmed on the ground that as per the notification, recipient of the service is liable to pay the tax - They have also submitted that in the circular issued by CBEC vide F. No. 341/18/2004 TRU(PT) dated 17-12-2004 it has been clarified that if service tax due on transportation of a consignment has been paid service tax should not be charged for the same amount from any other person to avoid double taxation held that prima facie the case is in favor of appellant stay granted.

Summary

The Appellate Tribunal CESTAT, Ahmedabad confirmed a demand for service tax of Rs.1,10,246/- against the appellants, imposing a penalty equal to the service tax amount under Section 78 of the Finance Act 1994. The appellants argued that the service tax had already been paid by the transporters, citing a CBEC circular to support their case. The Tribunal found a prima facie case in favor of the appellants, waiving the pre-deposit of the service tax demanded and penalty under Section 35F.