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2018 (12) TMI 382 - AT - Service TaxLiability of sub-contractor to pay service tax - It is the case of appellant that main contractor is already paying the service ax and the liability on him will amount to double taxation - Held that:- In the instance case it has not been clarified in the certificate of M/s Furnace Fabrica (India) Ltd that whether service tax has been paid on the entire value of the service and if M/s Furnace Fabrica (India) Ltd was entitled to cenvat credit of the service tax paid by appellant. In these circumstances it cannot be said that liability of service tax on the appellant is amounting to double taxation. The argument that if service recipient is paying tax, such service provider would be exempt from payment of tax would destroy the entire structure of all the service tax law. Thus, the argument that no liability can be fixed for appellant because M/s Furnace Fabrica (India) Ltd has paid service tax it cannot be accepted. - demand upheld. Wroks contract service or not - the argument of the appellant is that the services provided by the appellant are in the nature of work contract, therefore, they cannot be any liability of service tax for the period prior to 01.06.2007 - Held that:- From the work order placed to the appellant from M/s Furnace Fabrica (India) Ltd, it is seen that it is essentially work order for service. The question is that whether inclusion of the value of consumables in the service would convert all item of service into work contract? Consumption of goods by service provider during the provision of the service does not automatically convert the service into work contract. If the scope of work contract is extended to including consumables then there will be no service which can fall outside the purview of work contract. Even consultancy service provided by engineer or advocate involves consumable like Paper, Ink, Pen, etc., service provided which are inclusive all the value of consumable cannot be treated as work contract. Thus, the service provide by the appellant cannot be treated as work contract as claimed by appellant - demand upheld. Appeal dismissed - decided against appellant.
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