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2024 (6) TMI 768 - AT - Service TaxIssues involved: Challenging demand of service tax for services rendered as 'sub-contractor' when main contractor paid tax. Details of the judgment: 1. The appellant, registered for providing building and civil structures services, was issued demand notices for service tax for the period 2007-08 to 2013-14. Despite notices, appellant did not respond, leading to Best Judgement Assessment. Demand was confirmed in appeal. Appellant challenged the order. 2. The appellant argued that as per a Supreme Court decision, composite work contracts are taxable under works contract service post-June 2007. Also, the appellant claimed that the main contractor had paid the total tax, discharging appellant's obligation. 3. The issue of sub-contractor liability was referred to the Larger Bench, which held that a sub-contractor is liable to pay service tax even if the main contractor paid. Previous appeals by the appellant were dismissed based on this principle. 4. The Tribunal found that the appellant's agreement with the main contractor required the appellant to discharge the service tax liability, contradicting appellant's claim of the main contractor paying the duty. Lack of details on payments further supported the authorities' Best Judgement Assessment under section 72 of the Act. 5. The appellant's services fell under commercial or industrial construction services, making them liable for service tax. The appellant's argument of service recipient depositing tax was rejected, as the statute does not allow shifting tax liability. The appellant was not entitled to exemption under a specific notification. 6. As the appellant failed to pay service tax during the relevant period, interest and penalties were justified. The penalty imposed under sections 76 and 77 of the Act was upheld due to the appellant's non-compliance with section 66. 7. The Tribunal affirmed the impugned order and dismissed the appeal, pronouncing the order on 07.06.2024.
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