TMI Blog2018 (8) TMI 2028X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided by such subcontractors are used by the main service provider for completion of his work does not in any way alter the fact of provision of taxable service by the subcontractor - Services provided by the subcontractors are in the nature of input services. Service tax is therefore, leviable on any taxable services provided, whether or not the services are provided by a person in his capacity as a subcontractor and whether or not such services are used as input services. The fact that a given taxable service is intended for use as input service by another service provider does not alter the taxability of the service provided - As the position was clarified by the revenue vide Circular No. 96/7/2007-S.T. dated 23.08.2007 that a subcontr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - ST/76609/2017 - FO/76513/2018 - Dated:- 10-8-2018 - Shri P.K.Choudhary, Member (Judicial) Shri Lachman Samtani, Consultant for the Appellant (s) Shri H.S.Abedin, AC(AR) for the Respondent (s) ORDER The facts of the case in brief are that the appellant assessee is registered with the Service Tax Authorities and has been rendering services under Commercial or Industrial Construction Services , Maintenance or Repair Service , Erection Fabrication Commissioning and Transport of Goods by Road . The appellant entered into an agreement with M/s T.R.F. Ltd. for providing fabrication erection of structures at the site of M/s Hooghly Met Coke Power Co. Ltd., Pathikhali, Haldia. That the appellant carried out afores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o produce any evidence before the lower appellate authority that the main contractor discharged the tax liability. 4. Heard both sides and perused the appeal records. 5. I find that by a Circular No.96/7/2007-S.T. dated 23.08.2007, with reference to Code 999.03/23.08.2007 , it is clarified that a subcontractor is essentially a taxable service provider. The fact that services provided by such subcontractors are used by the main service provider for completion of his work does not in any way alter the fact of provision of taxable service by the subcontractor. Services provided by the subcontractors are in the nature of input services. Service tax is therefore, leviable on any taxable services provided, whether or not the services are pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ws and suggestions received from the trade and industry associations, departmental officers and other stakeholders, it is proposed to codify and issue a comprehensive circular on the technical issues. Thus, there is no suppression of facts with intent to evade payment of tax and therefore, extended period of limitation cannot be invoked. Similarly, the imposition of penalty under Section 78 is also not sustainable. 8. In view of the above discussions I uphold the impugned order to the extent of demand of service tax along with interest for the normal period of limitation and imposition of penalty under Section 76. The demand of service tax for the extended period of limitation and penalty under Section 78 of the Act are set aside. The ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
