TMI Blog2014 (1) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... tax remitted, within the ambit of provisions of the Cenvat Credit Rules. The fact that taxable service is provided at various stages or by several agencies sequentially does not alter the trajectory of the legislative provisions. Circulars dealt with customs house agent service and architect service. It is axiomatic that while the Board may be authorized to issue any instruction/guidance to field formations, there is no legislative authority for the Board to be issuing comprehensive commentary on the entire gamut of the Finance Act, 1994 The appellant could hardly claim to have been misled by a Board Circular issued in respect of a wholly distinct service and drawing generic jural principles from such circulars. Had the appellant gone t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Audit revealed non-remittance of tax and hence a notice was issued on 11.9.2008 by the concerned Superintendent with subsequent reminders dated 23.9.08 and 6.11.08 calling upon the appellant to pay service tax along with interest and to file all half yearly ST-3 returns. The appellant neither responded nor appeared in response to the notice. Consequently, the show cause notice dated 10.12.20108 was issued. 4. The appellant did not submit any written response to the show cause notice but in response to the notice providing personal hearing Shri Sandeep Kumar Singh, partner of the appellant appeared before the adjudicating authority and submitted that the appellant worked as a sub-contractor to the principal contractor during the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. The appellant preferred an appeal contending that Board Circular 7.10.98, a Trade Notice dated 11.6.97 issued by New Delhi Commissionerate and several decisions of this Tribunal including the decision in Viral Builders vs. C.C.E. -2011 (21) STR 457 (Tri-Ahmd.) and Urvi Constructions vs. C.S.T. 2010 (17) STR 302 (Tri-Ahmd.) had clearly ruled that if the principal contractor pays service tax on the entire amount received from the ultimate recipient, the sub-contractor was not liable to remit service tax. 7. Ld. Appellate Commissioner rejected the appeal by placing reliance on the Board Circular dated 23.8.2007 wherein it was clarified that a sub-contractor being essentially a taxable service provider was required to remit tax even if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry taxable service provider at every stage of provision of a taxable service. The recipient of a taxable service may be entitled to avail input credit of the service tax remitted, within the ambit of provisions of the Cenvat Credit Rules. The fact that taxable service is provided at various stages or by several agencies sequentially does not alter the trajectory of the legislative provisions. I find no legislative foundation or jural principle in either the Board Circular dated 6.6.97 and the one dated 7.10.98, in so far as these Circulars set out a principle that where a principal architect or a Customs House Agent remits service tax, his sub-contractor, rendering the same taxable service is not liable to service tax. 10. Relying on a si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sub-contractor when the main contractor has remitted the service tax including on the component of service provided covered by the appellant. This contention does not commend acceptance. It requires to be noticed that the Board Circular relied upon by the appellant before the ld. Appellate Commissioner did not pertain to CICS. As adverted to earlier, these Circulars dealt with customs house agent service and architect service. It is axiomatic that while the Board may be authorized to issue any instruction/guidance to field formations, there is no legislative authority for the Board to be issuing comprehensive commentary on the entire gamut of the Finance Act, 1994 The appellant could hardly claim to have been misled by a Board Circular i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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