2016 (12) TMI 1591 - AT - Service Tax

Sub-contract - levy of tax - liability of sub-contractor to pay tax when the principle contractors had suffered tax - Erection, Commissioning and Installation Service - Held that - In view of the passage of time and no reply has come from Revenue, it is preferable to send the matter back to the ld. Adjudicating authority to verify whether the service rendered by the appellant has suffered tax in the hands of the principal contractors - appeal allowed by way of remand.

Summary

The Appellate Tribunal CESTAT CHENNAI remanded a case back to the adjudicating authority to verify if the service rendered by the appellant has already been taxed by the principal contractors. If so, the appellant may not be liable for service tax. The tribunal emphasized the importance of considering value addition in taxation and stated that if taxes were paid correctly, interest and penalty may not apply.