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2017 (4) TMI 1024 - CESTAT HYDERABADSub-contract - Management, Maintenance or Repair Services - Manpower Recruitment & Supply Agency Services - The Department entertained a view that as per CBEC Circular No. 96/7/2007-ST dated 23.08.2007 the sub contractor is also liable to pay service tax even though main contractor has paid the tax - Held that: - In the case of Nana Lal Suthar Vs. CCE, Jaipur-I [2015 (9) TMI 1446 - CESTAT NEW DELHI] the Tribunal had analyzed a similar issue and held that the sub contractor is absolved from the liability when the main contractor has discharged the liability on the same services - demand unsustainable. Renting of Immovable Property Service - The first contention put forward by the appellant is that they would fall within the exemption limit of ₹ 10,00,000/- if RIPS is solely considered to be the taxable service provided by them - Held that: - The services provided by the appellant as sub-contractor are also taxable services, though the liability is discharged by main contractor. Where a taxable service provider provides one or more taxable service from one or more premises, the exemption under notification No. 06/2005-ST dated 01.03.2005 shall not apply if the aggregate of all such services is more than ₹ 10,00,000/-. The MRA and MMR services provided by appellant also being taxable services, the appellant cannot get the exemption of threshold limit of ₹ 10 lakhs. The renting of immovable property service came into force w.e.f. 01.06.2007 in terms of N/N. 23/2007-ST dated 22.05.2007. Thus the levy on renting of property against the previous levy on services relating to renting of property prior to 01.07.2010 was created retrospectively and therefore, the demand for the extended period is highly irregular - interest cannot be demanded for the demands made on the basis of retrospective amendments. Appeal allowed - decided partly in favor of assessee.
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