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TMI Blog2014 (9) TMI 462X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Authority has confirmed the exact amount to the last rupee. Service Tax liability which has already been discharged, cannot be again recovered from the appellant, who has taken-over the business from a particular day. This would amount to double taxation on the same service which is not contemplated in law. - Decided in favor of assessee. - Appeal No. : ST/12481/2014 - ORDER No. A/11606/2014 - Dated:- 2-9-2014 - Mr. M.V. Ravindran and Mr. H.K. Thakur, JJ. For the Appellant : Shri Anil Balani, Adv. For the Respondent : Shri J Nagori (AR), Shri Raju (Jt CDR) JUDGEMENT Per : Mr. M.V. Ravindran; When this stay petition was called out, after hearing both sides for some time on the stay petition, we find that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount received in consideration of taxable services provided till 30.6.2006 by them had been reflected in the Books of Account maintained in favour of the Noticee as per terms and conditions of Business Transfer Agreement dated 30.06.2006 for having transferred the business along with its entire liability and assets. The Noticee has not discharged the Service Tax liabilities on services provided on or after 30.06.2006. As per the agreement made on 30.06.2006 the Noticee continued to carry out the activities of Construction and liability for payment of Service Tax on such activities is on the Noticee. The Service Tax on service provided by the Noticee the period 01.07.2006 to 31.03.2008 is required to be paid by the Noticee, but they fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Ld Counsel appearing for the appellant draws our attention to the OIO and the findings recorded by the Adjudicating Authority. It is his submission that the appellant had taken-over the running business of Essar Projects Ltd and it was made effective from 30th June 2006. He would also submit that the appellant had taken-over all the assets but the liabilities for earlier period, contracted as to be discharged by Essar Projects Ltd. It is his submission that even if any tax liability arises, it is the responsibility of Essar Projects Ltd and not the appellant. Alternatively, he would submit that on merits also, the entire amount of Service Tax liability as confirmed is already paid by Essar Projects Ltd as is evident from the audit repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt. Representative, we find that Essar Projects Ltd had undisputedly discharged the Service Tax liability which is confirmed against the appellant. This is evident from the fact that the audit team vide its final audit report dtd 20th November 2009 in Paragraph 2 recorded is as under : As observed and verified from records that the entire business was closed by way of selling it to another group unit i.e., M/s Essar Construction (I) Ltd (ECIL) on 30.6.06, but the assessee had carried forward the amount of ₹ 43,96,046/- as cenvat credit lying in balance on 30.06.06 instead complying with the Transfer of credit provisions made in the Rule 10 of the Cenvat Credit Rules, 2004. Further, the assessee informed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicating Authority has confirmed the exact amount to the last rupee. We find that this position of discharge of Service Tax liability by Essar Projects Ltd remains undisputed by the audit report given by the Dept official, not controverted by revenue. In our considered view, Service Tax liability which has already been discharged, cannot be again recovered from the appellant, who has taken-over the business from a particular day. This would amount to double taxation on the same service which is not contemplated in law. 11. In view of the foregoing findings, we set aside the impugned order as unsustainable and allow the appeal filed by the assessee. 12. Impugned order is set aside and the appeal is allowed. (Operative part pronou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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