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TMI Blog2016 (7) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the sub contractor is not liable to pay service tax for the services provided by him. However it is for the adjudicating authority to decide on verification of records regarding the discharge of liability of 'service tax' and to decide with respect to the credit relating to the 'input service'. Necessary decision has to be taken by the 1st respondent considering the claim for the credit based on remittance of the entire tax liability by the 1st respondent. - In view of the interim order continued during pendency of this writ petition, no demand can be enforced against the 4th respondent for payment of service tax with respect to the contract in question, till the adjudication is finalised. - Decided partly in favor o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of 'input service' and therefore service tax is leviable on any taxable service provider. It was clarified that service tax is liable to irrespective of whether the services are provided by a persons in his capacity as sub-contractor or not. It is mentioned that taxable services intended for use as ' input service' by another service provider will not alter the liability of service tax with respect to the service provider. The petitioner is challenging Ext.P6 clarifications and seeking appropriate direction restraining respondents 1 and 2 from directing the 4th respondent to charge service tax in respect of the service provided under Ext.P2 sub-contract agreement. Inter alia Ext.P8 is also challenged to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ically defined in the statute. Relying on Ext.P8 Circular it is contended that the Board is authorized to issue circulars prescribing the method of levy of tax. Since the service provided by the sub-contractor is in the nature of 'input service', which is used by the main service provider for completion of the work undertaken by him, the 4th respondent cannot be exonerated from the liability fetched upon him in the capacity as service provider. He is always liable to comply with the requirements of filing returns and for paying tax. Even if the petitioner had discharged the entire liability, only a credit can be claimed under the provisions of the Cenvat Credit Rules, is the contention. 4. This court is of the conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision has to be taken by the 1st respondent considering the claim for the credit based on remittance of the entire tax liability by the 1st respondent. 6. Hence this writ petition is disposed of by directing the 1st respondent or the competent authority to conduct an adjudication as mentioned above and to decide the tax liability. 7. In view of the interim order continued during pendency of this writ petition, no demand can be enforced against the 4th respondent for payment of service tax with respect to the contract in question, till the adjudication is finalised. It is further directed that in view of the fact that the matter was pending adjudication before this court, the 4th respondent shall not impose with any penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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