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TMI Blog2022 (12) TMI 1145X X X X Extracts X X X X X X X X Extracts X X X X ..... udicating authority himself. It is also an admitted fact, as also certified by the main contractor, that they neither paid any Service Tax in respect of all three service activities in dispute, nor any demand was raised against them in this regard as well. The Appellant has mainly contended that they were under bonafide belief that no Service Tax was payable on the work in question, being exclusively Governmental construction and when the main contractor too had not paid any Service Tax thereon without any adverse view being taken by Service Tax department. The demand is mainly contested as being time-barred as such - Also if the Appellant was liable to pay Service Tax, back to back, even the main contractor would have also been liable to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed, substantial amount of demand is already dropped vide the impugned order, which is not challenged by revenue department. The balance demand in dispute consists of three separate types of issues, which are dealtwith separately. He also submitted that in all the cases, the Appellant acted merely as a sub-contractor to the main contractor , one M/s. Shantilal B. Patel & Co., on whom no demand of Service Tax has been raised till date, leading to their bonafide belief that they were exempt from payment of Service Tax in the capacity of Sub-Contractor. 3. He submits that the first nature of demand is raised on undertaking construction of Affordable Housing under Mukhyamantri Gruh Yojna (MGY), the Appellant had provided services to the main c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a sub-contractor where main contractor is exempt from payment of Service Tax. 4. He further submits that as regards the Narmada Guest House construction and refurbishment work undertaken for the main contractor M/s. Shantilal Patel, the impugned order holds that inasmuch as the work order executed between the Appellant and the main contractor was dated 1.12.15, whereas only "contract entered into prior to 1.3.15 towards such construction services provided to Govt/local authority" is exempt from payment of Service Tax, the said exemption is not available to the Appellant. He further submitted that admittedly, no demand of Service Tax on main contractor was ever raised, which led to the bonafide belief regarding the Appellant being exempt u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elief in this regard regarding eligibility of exemption being Governmental work. He finally argued that CESTAT in the case of P.R. Rolling Mills Pvt. Ltd 2010(249) ELT 232(Tri-Bang) as upheld by Hon'ble Supreme Court of India as reported at 2010(260) ELT A84(SC), held that if any duty was paid by job worker, would be availed as Cenvat Credit by principal anyway, this being revenue neutral situation, the demand has to be treated as time-barred. 8. Shri Dinesh M. Prithiani, learned Assistant Commissioner (Authorised Representative) reiterates the findings recorded by the lower authority. He submits that since apart from affordable housing, even marginal commercial construction was involved, for which no breakup is provided by the Appellant, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit by the main contractor anyway. 11. We also find merit in the reliance on the decision of the CESTAT in the case of P.R. Rolling Mills Pvt. Ltd 2010(249) ELT 232(Tri-Bang) as upheld by Hon'ble Supreme Court of India as reported at 2010(260) ELT A84(SC), to the effect that if any duty was paid by job worker, would be availed as Cenvat Credit by principal anyway, this being revenue neutral situation, the demand has to be treated as time-barred. The same analogy can be applied even for sub-contractor and main contractor as well. 12. Therefore without going into any other issues, including whether exemption for construction of affordable housing under MGY scheme is available irrespective of small portion of commercial construction involved ..... X X X X Extracts X X X X X X X X Extracts X X X X
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