TMI Blog2023 (2) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... issue has been decided by a Larger Bench of the Tribunal in COMMISSIONER OF SERVICE TAX VERSUS MELANGE DEVELOPERS PVT. LTD. [ 2019 (6) TMI 518 - CESTAT NEW DELHI] . The Larger Bench answered the reference holding that a sub-contractor would be liable to pay service tax even if the main contractor discharged service tax liability on the activity undertaken by the sub-contractor in pursuance of the contract. In coming to the aforesaid conclusion, the Larger Bench placed reliance on the provisions of sections 66, 68 and 94 of the Finance Act. The Larger Bench also noted that the matter had been referred because of conflicting decisions of the Tribunal on the issue as to whether a sub-contractor was required to pay service tax even if the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y even if the main contractor had discharged the service tax liability. The issue as to whether the extended period of limitation could be invoked in such a situation when there are conflicting views of the Tribunal on a particular issue has been considered by the Supreme Court in various decisions - In JAIPRAKASH INDUSTRIES LTD. VERSUS COMMISSIONER OF C. EX., CHANDIGARH [ 2002 (11) TMI 92 - SUPREME COURT] , the Supreme Court held that when there are divergent views of High Courts, there can be a bona fide doubt as to whether the activity would amount to manufacture and in such circumstances it cannot be urged that there was mis-statement or suppression of facts with intent to evade payment of duty - In M/S CONTINENTAL FOUNDATION JOINT V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consulting engineer services defined under section 65(31) of the Finance Act and made taxable under section 65 (105)(g) of the Finance Act. The assessee also entered into an agreement on February 14, 2010 with M/s. Lion Engineering Consultant [the main consultant], which was engaged in the business of providing consultancy services to the Government of Madhya Pradesh. Under this agreement, the main consultant decided to sublet work to the appellant and permitted him to work as a sub-consultant in accordance with the terms set out in the agreement. 4. The dispute in the present appeals relates to the services provided by the assessee as a main consultant as also to the services provided by the assessee as a sub-consultant of the main co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he main contractor had discharged the service tax liability. 8. The reasons given by the Larger Bench to hold that a sub-contractor would be liable to pay service tax even if the main contractor has discharged service tax liability would also be applicable in the case of a sub-consultant. 9. In view of the aforesaid decision of the Larger Bench of the Tribunal, it has to be held that a sub-consultant would have to discharge service tax liability even if the main consultant has discharged the service tax liability. 10. In such circumstances, the decision taken by the Principal Commissioner to confirm the demand for the normal period of limitation does not suffer from any illegality. 11. The next issue that is required to be decid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to suppress facts on their part as they had regularly declared the value of exempted services also in their ST-3 returns and as such the proviso to Section 73(1) of the Act are can also not be invoked in this case. Consequently, the demand for normal period i.e. from July 2012 to March 2013 is confirmed. I am refraining from imposing any penalty on the Notice as the issue is only of technical nature and there is no loss of revenue to the exchequer. 13. It is seen that the Principal Commissioner noted that the assessee in the ST-3 Returns had disclosed the taxable income and also disclosed the exempted services for the relevant period and therefore, the Department could not urge that there was suppression of facts by the assessee wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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