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2015 (5) TMI 298 - AT - Service TaxDemand of service tax - Commercial or Industrial Construction service - Held that:- Sub-contractor was not required to pay service tax if the main contractor had paid service tax on the entire value had no legal validity. The CBEC itself revised/reversed that clarification in the year 2007 vide circular dated 23.08.2007. However, prior to 23.08.2007, the appellants certainly had a ground not to pay the service tax as sub-contractors in view of the then prevailing clarification of the Board and therefore the extended period with regard thereto is prima facie not invokable making that component of demand time barred as the Show Cause Notice was issued on 18.10.2010. It is however seen that they were rendering service on their own account also but failed to discharge due service tax thereon. While their contention of non-invokability of extended period can be considered only at the time of final hearing, in view of the said contention and having regard to the fact that an amount of ₹ 3.96 lakhs has already been deposited and the demand relating to their liability as sub-contractor is clearly hit by time bar, we order pre-deposit of ₹ 9 lakhs within 4 weeks - Partial stay granted.
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