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2023 (4) TMI 1023 - AT - Service TaxLevy of Service Tax - sub-contractor - non-inclusion of value of services rendered by their sub-contractors - Board Circular in F. No. B/11/1/2002-TRU dated 01.08.2002 - suppression of facts or not - Extended period of limitation - HELD THAT:- Though the appellant, as a sub-contractor, was duty bound to discharge the tax liability, perhaps the communication dated 12.07.07 issued by the main contractor i.e., M/s. Aspinwall & Co., prompted them to believe that the tax had indeed been remitted. The villain appears to be M/s. Aspinwall & Co. who misled the appellant or made the appellant believe that it had remitted tax and in turn, made the appellant rely on the letter dated 12.07.07 issued by it in response to Show Cause Notice issued by the Department. This is a sufficient reason and other than this, there are no documents being brought out on record by the Revenue to prove mala fides on the part of this appellant, so as to justify invoking the larger period of limitation in this case. It is also a fact borne on record that the main contractor has not denied the fact of having collected full consideration including Service Tax from the clients. On a similar set of facts, in the case of another sub-contractor viz. M/s. Vinoth Shipping Services [2021 (8) TMI 1117 - CESTAT CHENNAI], it is found that the Chennai Bench of the CESTAT has given a finding that there was no factual basis for invoking the extended period, though declining to entertain the appeal on merits, but allowing the assessee’s contention on invoking of the extended period of limitation - the fact of suppression, etc., has not been established by the Revenue to justify invoking the extended period of limitation and therefore, in view of our discussions in the above paragraphs, the ratio of the order of this Bench in the case of M/s. Vinoth Shipping Services, wherein the order of the Larger Bench in M/s. Melange Developers Pvt. Ltd. [2019 (6) TMI 518 - CESTAT NEW DELHI] was followed, squarely applies here too. For these reasons, the impugned order, to this extent, cannot sustain. The appeal fails on merits, but however, the demand pertaining to the larger period, if any, cannot sustain and consequently, the impugned order, to this extent, is set aside - Appeal allowed on limitation.
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