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2016 (7) TMI 782 - HC - Service TaxLevy of service tax on sub-contractor - It was submitted that, invoice would indicate that service tax was levied on the bill raised by the petitioner on the 3rd respondent. Therefore the petitioner took a stand that no service tax need be levied on the bill raised by the 4th respondent on the petitioner. - Held that:- This court is of the considered opinion that in view of the specific clarifications regarding 'input service' rendered by the sub-contractor, which is used by the main service provider for completion of the work, it cannot be held that the sub contractor is not liable to pay service tax for the services provided by him. However it is for the adjudicating authority to decide on verification of records regarding the discharge of liability of 'service tax' and to decide with respect to the credit relating to the 'input service'. Necessary decision has to be taken by the 1st respondent considering the claim for the credit based on remittance of the entire tax liability by the 1st respondent. - In view of the interim order continued during pendency of this writ petition, no demand can be enforced against the 4th respondent for payment of service tax with respect to the contract in question, till the adjudication is finalised. - Decided partly in favor of petitioner.
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