TMI Blog2017 (9) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... main clients like BHEL, NTPC, etc to the effect that service tax was not charged for sub-contracted work - demand upheld. Extended period of limitation - Held that: - The clarifications issued and decisions of the Tribunal did give room for bonafide belief for non-tax liability of a subcontractor - the demand of service tax is to be restricted to normal period with no liability to penalties. Appeal allowed - decided partly in favor of appellant. - ST/926/2011-DB - ST/A/55686/2017-CU[DB] - Dated:- 3-8-2017 - Mr S.K. Mohanty, Member (Judicial) And Mr B. Ravichandran, Member (Technical) Present for the Appellant : S/Sh Rajesh Kumar Ahmed Shezaaz. Advocates Present for the Respondent : Shri Amresh Jain, DR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regular contractors and started discharging tax on the work executed by them. In view of the bonafide belief, based on the clarification and the advise given by the various main contractors, the ld. Counsel pleaded that there can be no question of suppression of fact with intention to evade payment of tax. Extended period of demand cannot be issued for recovery of Service Tax and also for imposing penalties. 3. The ld. AR reiterated the findings of the original authority. He submitted that there is no legal basis for the claim made by appellant regarding tax liability of sub-contractor. When there is a service provider, service recipient and identified category of taxable service, tax liability will automatically arise. The issue relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... generally apply, though the clarification specifically focused on consulting engineer services. In fact, similar clarification was issued vide Board s circular dated 31.10.1996 in respect of sub-agents of couriers to state when the main courier has discharged his service tax, there will not be further liability on the sub-agents. While the tax liability is strictly in accordance with the provisions of Finance Act, 1994, we hold that in the present case, we find certain clarifications issued by the Board and field formations did had an effect of creating a bonafide belief regarding non-liability tax of subcontractors when the main contractor discharged service tax on the whole contract value. Reference can also be made to various decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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