2016 (9) TMI 844

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..... rior to issuance of show-cause notice - main contractor has discharged the service tax liability for ECIS service rendered to the client - Held that:- we are convinced and satisfied with the arguments put forward by the appellants to conclude that the demand of service tax for ECIS services is not sustainable as the main contractor has discharged the service tax liability. So also as the appellan .....

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..... owing demand, interest and penalty:- (i) ₹ 8,80,590/- (Rupees eight lakhs eighty thousands five hundred and ninety only) being the service tax and the CESSes payable thereon on the Management, Maintenance Repair Services rendered during the period from 10/2007 to 3/2008. However, ₹ 8,80,590/- and amount representing the interest thereon paid on 27/01/2012 was appropriated against .....

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..... and (vi) Penalty of ₹ 200/- Pere day during which such failure continues or at the rate of 2% of such tax, per month, whichever is higher, starting with the first day after the due date till the date of actual payment of the outstanding amount of service tax, under the provisions of Section 76 of the Finance Act, 1994. 2. It is submitted by Shri G. Prahlad the learned counsel appearin .....

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..... same High court in the case of CCE ST, LTU, Bangalore Vs. Adecco Flexione Workforce Solution Ltd. [2012(26) STR 3 (Kar.)]. 3. The second demand is ₹ 2,09,63,859/- in respect of ECIS rendered by appellant. The appellant challenges this demand raising the ground the main contractor has discharged the service tax liability for theses service rendered to the client and appellant being a sub .....

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..... the show-cause notice, no penalty can be imposed in this regards. Cumulatively, all penalties imposed in the impugned order are unsustainable and liable to be set aside, which we hereby do. The demand and interest of service tax on ECIS is set aside for the reason that the main contractor has discharged the liability. 6. In the result, the impugned order is modified to the extent or setting asi .....

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