2012 (7) TMI 500 - AT - Service Tax

Goods Transport Service no service tax paid Held that - When the transporter is same and recipient is respondent and there is no contradiction that tax was collected from the transporter, double taxation on the same transaction is inconceivable under the present provisions of Finance Act, 1994 - no loss of Revenue - Revenue appeal dismissed.

Summary

Issues:
- Appeal against service tax liability on Goods Transport Service

Analysis:
The appeal before the Appellate Tribunal CESTAT, New Delhi concerned the grievance raised by the Revenue regarding the absence of service tax liability discharged by the respondent on Goods Transport Service. The Revenue contended that the tax was not paid by the respondent for the service provided. However, the respondent argued that tax had already been collected from the transporter for the same service, and hence, there should be no double taxation. The respondent cited a previous Tribunal decision to support their position. After hearing both sides and examining the records, the Tribunal found that there was no evidence to suggest that the service provided by the transporter was to someone other than the appellant. As the transporter and the respondent were the same parties, and tax had been collected from the transporter, the Tribunal concluded that double taxation on the same transaction was not permissible under the Finance Act, 1994. The Tribunal rejected the Revenue's appeal, stating that there was no loss of Revenue in this case, and the situation fell within the parameters of the decision cited by the respondent. Consequently, both appeals of the Revenue were dismissed by the Tribunal.

This judgment highlights the importance of ensuring that service tax is appropriately discharged and emphasizes that double taxation on the same transaction is not permissible under the prevailing provisions of the Finance Act, 1994. It underscores the need for clarity and consistency in tax collection processes to avoid unnecessary disputes and redundancies. The decision also showcases the Tribunal's adherence to legal principles and precedents in reaching a fair and just outcome in matters of taxation disputes.