9911796707
TMI Blog2018 (4) TMI 1502X X X X Extracts X X X X X X X X Extracts X X X X ..... be denied as per the legal provisions. The provisions of CCR 2004 is clear to the effect that tax liability will arise on value addition. The concept that the ultimate service provider who used the input service alone is liable to pay tax is against the very principle of Value Added Tax. The appellant shall be liable for service tax for the repair and maintenance charges undertaken by them eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r from LMW, the goods were returned to LMW who in turn gave it to the appellant for due rectification. After rectification and repair, the repaired assembly were supplied back to LMW who dealt with the same later on. The dispute in the present appeal relates to service tax liability of the appellant under the category of Management, Maintenance or Repair Services in terms of Section 65 (64) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified in the said circular. However, from 1997 on wards, the clarification available was that when the main contractor discharges service tax, there is no liability on the sub contractor. Such being the understanding, the appellant cannot be accused of malafide intent for invoking the demand for the extended period as well as for imposing penalty. Regarding satisfactory proof of service tax paid o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nput service alone is liable to pay tax is against the very principle of Value Added Tax. However, the fact remains that there were clarifications surviving for many years from 1997 issued by the Board. This clarification with reference to non-liability of sub contractor when the main contractor discharges service tax did create bonafide belief on the part of appellant-assessee who acted as a sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded period cannot be sustained. The appellant shall be liable for service tax for the repair and maintenance charges undertaken by them even in case such labour charges form part of service tax paid by LMW. 6. In view of the above discussion, the impugned order is set aside to the extent indicated above. Appeal is partly allowed with consequential relief, if any as per law. (dictated and pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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