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2023 (7) TMI 60 - CESTAT AHMEDABADLiability of Service Tax - liability of Appellant as a sub-contractor when main contractor M/s Reliance Group Security Services Pvt. Ltd., Jamnagar has paid the Service tax - period April 2002 to December 2003 - time limitation - HELD THAT:- C.B.E.C. had clarified that if the main contractor discharges the ServiceTax liability, the sub-contractor need not to pay Service Tax on the same activity and only in August, 2007 the Board issued a clarification in the matter vide Circular No. 96/7/2007-S.T., dated 23-8-2007 wherein it was clarified that the services rendered by the sub-contractors are in the nature of input service and, therefore, Service Tax is leviable on any taxable service provided, whether or not the services are provided by a person in his capacity as a sub-contractor and whether or not such services are used as input service. In the present case, the period involved is 2002-2003 i.e prior to the issue of the circular. In number of decisions in the case of URVI CONSTRUCTION VERSUS COMMISSIONER OF SERVICE TAX, AHMEDABAD [2009 (10) TMI 97 - CESTAT, AHMEDABAD], FOTO FLASH VERSUS COMMISSIONER OF SERVICE TAX [2007 (10) TMI 133 - CESTAT, BANGALORE] and SYNERGY AUDIO VISUAL WORKSHOP P. LTD. VERSUS COMMR. OF ST, BANGALORE [2008 (1) TMI 188 - CESTAT BANGALORE] it has been held that once the main contractor has discharged the Service Tax liability on a value which includes service provided by the sub-contractor, then the demand for ServiceTax on sub-contractor is not sustainable in law. As per the clarification in the Board’s Circular dated 23-8-2007 as well as dated 7-10-1998, if the principal had not paid the Service Tax then the same can be charged. If the Service Tax has already been paid by the principal, then the same cannot be demanded again - on this particular issue once again the matter needs to be remanded to Adjudicating Authority for verification of payment particular of Principal i.e M/s Reliance Group Security Services Pvt. Ltd. In the present matter the facts on records is that on 11.07.2006 statement of Shri Kaustabh Bosh, representative of M/s Reliance Group Security Services Pvt. Ltd. was recorded by Service tax department, Jamnagar, wherein he stated that they have paid Service tax of Rs. 51,41,907/- with respect to services rendered by Appellant. Appeal allowed by way of remand.
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