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2018 (6) TMI 805 - AT - Service TaxConstruction Services - Sub-contract - The revenue has carried out an investigation and it was revealed that the respondent had belatedly filed ST-3 return for the period 2005- 06 to 2009-10, the payment of service tax too was made after considerable delay along with interest - Held that:- the sub-contractor is independent service provider, the service provided by the sub-contractor is an input service for the respondent and when such service is billed by the respondent to their client the respondent comes into the shoes of service provider and his service even though it is received from the sub-contractor, shall be treated as fresh output service according to that sub-contractor as well as the respondent being main contractor are independently liable for payment of service tax - the matter needs to be remanded to Adjudicating Authority as whether demand can be dropped on the ground of revenue neutrality. Penalty u/s 76 77, and 78 - Held that:- From the plain reading of above section 80 it can be seen that the penalty can be waived under section 80 only in those case where there is sufficient cause for non payment of service tax. The section 80 does not provided wavier of penalty only when Service Tax is paid before issuance of Show Cause Notice therefore for waiver of penalty some more circumstances need to be looked into - the issue needs to be reconsidered. Appeal allowed by way of remand.
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