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2023 (9) TMI 233 - AT - Service TaxLiability of service tax - liability on sub-contractor for providing works contract service to the main contractor, at whose end Service Tax liability was discharged - HELD THAT:- After the decision of the Larger Bench in Commissioner of Service Tax, New Delhi Vs. Melang Developers Private Limited [.2019 (6) TMI 518 - CESTAT NEW DELHI] rendered on the issue there can be no second opinion that Appellant is liable to discharge the Service Tax liability but in view of the clear provision made under Section 67 Clause 2 that states that where gross amount is charged by the service provider which is inclusive of Service Tax payable, the value of taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged, the Appellant is liable to pay Service Tax after deducting the Service Tax due amount from the gross amount. In other words, Appellant is entitled to com-tax benefit as provided under Section 67(2) of the Finance Act, 1994. The appeal is allowed in part and the order of the Commissioner is modified to the extent that the Service Tax liability of the Appellant would be confined to the normal period with cum-tax benefit as provided in Section 67(2) of the Finance Act, 1994. Imposition of penalty of Rs.10,000/- under Section 77 and order for recovery of interest at appropriate rate under Section 75 on the reassessed value are hereby confirmed.
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