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2023 (5) TMI 811 - AT - Service TaxPartial Reverse Charge Mechanism - Requirement to pay the balance 50% of service tax as recipient of service in terms of N/N. 30/2012 ST. dated 20/06/2012 - contract for construction of a multi-storied building for the bank purpose to Tripura Housing and Construction Board, Agartala (THCB) - HELD THAT:- As per section 68(1) the Service Tax liability dwells upon the person, providing the taxable service. However, in terms of Notification No. 30/ 12-ST, dated 30.6.12, this liability is divided equally between the service provider and the service recipient - each sharing 50% tax payable. The following facts distinctly emerge in the matter : 1. TSCBL awards contract for construction of a multi-storeyed building to THCB for a consideration of Rs.45600000. The service recipient is TSCBL from THCB. 2. THCB engages M/s Dipak Paul, for the construction of the said building for a consideration of Rs.4,0616850.00.- herein the service provider is M/s Dipak Paul, while the service recipient is THCB 3. M/s Dipak Paul upon completion of the building hands it over to THCB.- thus M/s Dipak Paul provider of works contract service to THCB. 4. TSCBL releases entire funds and takes over the possession of the building from THCB. Under the circumstances no liability by way of RCM is accruable upon TSCBL, the appellant with regard to the aforesaid services rendered by M/s Dipak Paul. M/s Dipak Paul has provided the services to THCB who as per law can avail credit of tax paid by M/s Dipak Paul, as input service credit-who and was required to discharge the service tax liability. No show cause notice therefore merits issuance to the appellant herein as they are not recipient of service directly from M/s Dipak Paul. As there exist, no relationship between TSCBL and M/s Dipak Paul as a service receiver and a service provider for the impugned works order. No liability accrues upon the noticee to pay Service Tax. Therefore the order of the Learned Commissioner (Appeals) cannot be sustained and is therefore set aside. The appeal filed by TSCBL is allowed.
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