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2017 (9) TMI 993 - AT - Service TaxSub-contract - whether the sub-contractor is liable to pay service tax on the taxable service provided by it, irrespective of the fact that the main contractor had discharged the service tax liability on providing such service? - Held that: - CBEC vide Circular dated 23.08.2007 has clarified that the services provided by the sub-contractor is a taxable service, even if the same is used for completion of the work by the main service provider. Thus, for providing the taxable service, the sub-contractor is liable for payment of service tax on provision of such service. Time limitation - Held that: - the SCN was issued on 30.11.2011, seeking confirmation of service tax demand for the period April 2007 to September 2010. The issue of non-payment of service tax by the sub-contractor, when the same was paid by the main contractor was debatable, subject to various interpretations. Accordingly, favorably interpreting the provisions that the sub-contractor is not liable to pay service tax, the Commissioner (Appeals) has dropped the service tax demand - the respondent cannot be saddled with liability beyond the normal period of limitation - For computation of the service tax demand within the normal period of limitation, the matter remanded back to the original authority for necessary computation. Appeal allowed by way of remand.
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