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TMI Blog2018 (2) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant - The services provided by the sub-contract and used by the main service provider is liable for payment of Service Tax in the hands of sub-contractor. Extended period of limitation - Held that: - the department is not justified in invoking the extended time limit to demand service tax from the appellant. Moreover, the entire details of amount has already been recorded in the books of account of the appellant and the same has been noticed only during the period of audit by the department - extended period not invocable. For quantifying the demand, as above, the matter is remanded to the adjudicating authority - issue of penalty also to be redetermined - appeal allowed in part by way of remand. - Appeal No. ST/50496/2014 - Fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Sanjay Jain, DR for Revenue. 3. Shri Abhas Mishra, ld Counsel argued that during the period under dispute, the appellant has provided services to M/s DARCL as a sub-contractor and did not discharge the Service Tax, since M/s DARCL had promised to discharge the entire Service Tax liability on the amount received from M/s Vedanata Aluminum. He further submitted that they were under the bona fide belief that since the main contractor is discharging the liability on the whole of the gross amount received from M/s Vedanta, the appellant was not liable to pay any Service Tax on the services provided as a sub-contractor. In this connection, he brought to our notice the letter dated 20.12.2008 written by the appellant to the Jurisdictional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax by them. In this connection, they have referred to the clarification issued by DGST in October, 2003 to the fact that once the main contractor is paying service tax, the sub-contractor, whose entire value of service is sub-sumed in the value on which the Service Tax is paid by the main contractor, is not required to pay service tax separately. It is also seen that the appellant has specifically brought it to the notice of the Jurisdictional Supdt. of Central Excise through his letter above dated 29.12.2008. An extract from this letter is reproduced below: Further I relation to service provided to Delhi Assam Road Ways Corporation, Hissar (Haryana) (here-in-after called as DARC), we are a sub-contractor. M/s Vedanta Aluminium Ltd. ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arisen on the part of the appellant. In this connection, the CBEC circular No.96/7/2007-ST dated 23.08.2007 has clarified the issue as follows: Reference code Issue Clarification 999.03/23.08.2007 A taxable service provider outsources a part of the work by engaging another service provided, generally known as sub-contractor. Service tax is paid by the service provider for the total work. In such cases, whet her service tax is liable to be paid by the service provider known as sub-contractor who undertakes only part of the whole work. A sub-contractor is essentially a taxable service provider. The fact that services provided by s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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