2012 (8) TMI 341 - AT - Service Tax

Survey and Map Making - liability - assessee contended that main contractor was discharging the service tax liability on the entire contract executed by them and the appellant is only executing a part of the contract which have been awarded to them hence not liable to tax - Held that - On perusal of the certificates issued by original contractor, we find that the original contractor had given ref. no. of the contract and also their service tax registration no. which could have been verified by the lower authority inter departmentally. In our considered view this should have been done by the adjudicating authority before adjudicating the issue. Appeal is allowed by way of remand to the adjudicating authority

Summary

Issues:
Waiver of pre-deposit of service tax liability under 'Survey and Map Making' along with interest and penalty under Central Excise Act, 1944.

Analysis:
The stay petition was filed seeking waiver of pre-deposit of Rs. 9,91,975/- as service tax liability under 'Survey and Map Making' along with interest and penalty under the Central Excise Act, 1944. The Tribunal found that the appeal could be disposed of with the consent of both parties after waiving the pre-deposit condition. The appellant, represented by Mr. Patel, argued that they were a sub-contractor for various companies and the main contractor had already paid the service tax liability for the entire contract. The appellant contended that they should not be held liable for any service tax and raised concerns regarding limitation.

Upon reviewing the certificates provided by the appellant from the original contractor, the Tribunal noted that the original contractor had discharged the service tax liability for the work executed by the appellant. Citing previous Tribunal decisions, the Tribunal held that the appellant should not bear the service tax liability if the original contractor had already paid it. The Tribunal criticized the lower authority for directing the appellant to produce the account and accounting procedure of the original contractor, stating that it was the responsibility of the adjudicating authority to verify the details provided in the certificates issued by the original contractor. The Tribunal emphasized that this verification should have been conducted by the authority before adjudicating the issue.

Consequently, the Tribunal set aside the impugned order and allowed the appeal by way of remand to the adjudicating authority, instructing them to reconsider the issue while adhering to the principles of natural justice. The Tribunal emphasized that the adjudicating authority should keep all issues open for reconsideration and ensure a fair and just decision-making process.

In conclusion, the Tribunal's judgment centered on the waiver of pre-deposit of service tax liability, the responsibilities of the original contractor in paying the service tax, and the procedural errors made by the lower authority in directing the appellant to provide unnecessary documentation. The decision highlighted the importance of following natural justice principles and conducting thorough verification before making judgments in tax liability cases.