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2017 (5) TMI 961 - AT - Service TaxSub-contract - service tax liability - Held that: - the Circular dated 23/08/2007 issued by the Board clarified the decision regarding the service tax liability of the sub-contractors. However, for the periods prior to that the situation as clarified by the Ministry and followed in various decisions of the Tribunal as well as High Courts that when the full service tax liability on the whole contract has been discharged by the main contractor there is no liability on the sub-contractor who executed part of said main contract. This position remained valid till the introduction of Cenvat Credit Scheme and issue of Master Circular dated 23/08/2007 - the matter is remanded back to the Original Authority for re-verification of the service tax payments made by the main contractor and in case the service tax liability has been clearly discharged by the main contractor for the whole contract and the appellant’s liability as a sub-contractor is part and parcel of that main contract then the service tax liability again cannot be put on the appellant - appeal allowed by way of remand.
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