2006 (10) TMI 379 - AT - Service Tax

Summary

Issues involved: Appeal against rejection of claim as 'Architect and Landscape Designers' and levy of Service Tax on sub-contractors.

Summary:
The appeal arose from the rejection of the appellants' claim to be treated as 'Architect and Landscape Designers' and the imposition of Service Tax on them as sub-contractors. The Commissioner noted the appellants' registration as 'Interior Decorators' for Service Tax purposes, which the appellants contested, leading to a direction for their registration as Architects. The appellants argued that they were sub-contractors to M/s. Chandravarkar and Thacker (P) Ltd., Bangalore, a fact not disputed by Revenue. They relied on precedents and circulars to support their position that tax liability should be on the main consultant, not the sub-contractor.

The appellants contended that they were wrongly categorized as 'Interior Decorators' and successfully had their registration changed to 'Architects'. The fact of their sub-contractor status to M/s. Chandravarkar and Thacker (P) Ltd., Bangalore was acknowledged by Revenue. Citing Tribunal judgments and circulars, it was argued that tax liability should rest with the main consultant, as supported by relevant authorities. Consequently, the demands for Service Tax on the sub-contractor were deemed legally unjustified, leading to the setting aside of the impugned order and allowing the appeal with any consequential relief.

In conclusion, the Tribunal ruled in favor of the appellants, emphasizing that the demands for Service Tax on the sub-contractor were not in accordance with the law, as established by precedents and official circulars, thereby setting aside the impugned order and providing relief to the appellants.