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2024 (5) TMI 807 - CESTAT KOLKATALiability of appellant, as a sub-contractor, to pay Service Tax when the main contractor has paid Service Tax on the services rendered - Consulting Engineer Service - services of supervision, coordination and monitoring in respect of engineering and technical works under the Yamuna Action Plan Project - extended period of limitation - penalty - HELD THAT:- The appellant has rendered the services to M/s. Tokyo Engineer Consultants Co. Ltd. as a sub-contractor. It is on record that the main contractor has paid Service Tax on the entire bill amount. However, it is observed that the Board has issued the Circular dated 23.08.2007 wherein it has been clarified that a sub-contractor is liable to pay Service Tax separately even if the main contractor discharges Service Tax on the entire amount. Accordingly, the appellant is liable to pay Service Tax on the services rendered by them as a sub-contractor. Invocation of the extended period of limitation - HELD THAT:- The appellant cannot be faulted for not paying Service Tax for the period prior to the issue of the clarification by the Board. Further, the entire issue was within the knowledge of the Department and there is no evidence brought on record to establish suppression of facts with intention to evade payment of tax on the part of the appellant. Accordingly, the extended period of limitation cannot be invoked to demand duty in this case. In the case of M/S SHREE RANIE GUMS & CHEMICALS PVT. LTD., M/S JAINSONS (INDIA) INDUSTRIES, M/S BASANT, M/S SATYAM ENTERPRISES (UNIT I) AND M/S SHREE RAM GUM CHEMICALS LTD. VERSUS CCE, JAIPUR-II [2017 (5) TMI 1303 - CESTAT NEW DELHI], this Tribunal has held that the demand raised by invoking the extended period includes normal period of limitation within it. Thus, when it is held that the extended period of limitation is not invokable, the demand for the normal period of limitation survives. Penalty - HELD THAT:- It is observed that no suppression of facts with intention to evade payment of Service Tax exists in this case. Hence, in the facts and circumstances of the present case, no penalty is imposable on the appellant. The demand of service tax for the extended period of limitation is set aside. The demand, if any, for the normal period of limitation, is confirmed along with interest - No penalty is imposable on the appellant - appeal disposed off.
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