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2016 (10) TMI 833 - AT - Service TaxScope of service - shot hole drilling - seismic job - sub contract work - whether the activities undertaken covered under taxable service of survey and exploration of minerals? - Held that: - the services rendered are liable to service tax under the scope of the above-mentioned tax entry. Sub-contractor - whether demanding service tax from them will amount to double taxation as the main contractor also is rendering similar service to ONGC? - Held that: - The service tax leviable at the hands of each service provider is decided by nature of activities undertaken by them. If the same is covered by scope of the taxable entry under Finance Act, 1994 tax liability arises. The said service becomes part of final service rendered by main contractor is of no consequence to determine the tax liability of each and every service provider. If at all, the service tax paid by a sub-contractor which becomes part of service further provided by the main contractor, the scheme of credit as envisaged by the Cenvat Credit Rules, 2004 will come into play subject to fulfillment of conditions therein. It is nobody s case that the sub-contractors per-se are not liable to service tax even if they rendered taxable service. Extended period of limitation - availability or otherwise of Cenvat credit to the recipient of service by itself cannot decide the bonafideness of the appellant. Reliance placed in the decision of CCE vs. Mahindra & Mahindra 2005 [2004 (9) TMI 115 - SUPREME COURT OF INDIA] where it was held that There can be number of eventualities where extended period of limitation in terms of proviso to Section 11A may be available to the Department despite availability of Modvat credit to an assessee. The availability of Modvat credit to an assessee by itself is not conclusive or decisive consideration. It may be one of the relevant consideration. How much weight is to be attached thereto would depend upon the facts of each case. Appeal dismissed - decided against appellant.
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