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TMI Blog2023 (1) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... [the sub-contractor] to the main contractor WPIL Limited and DC Industrial Plant Services Pvt. Ltd. The Commissioner has dropped the demand for the work undertaken prior to 23.08.2007, on which date the Master Circular was issued that a sub-contractor would also be liable to pay service tax even if the main contractor had paid the service tax. 2. Learned authorised representative appearing for the Department has placed reliance upon a Larger Bench decision of this Tribunal in Commissioner of Service Tax, New Delhi vs. Melange Developers Private Limited [2020 (33) GSTL 116 (Tri.-LB)] that holds that even if the main contractor has paid the service tax, a sub-contractor has necessarily to discharge the service tax liability. It is, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Commissioner deserves to be set aside. The Larger Bench, in its decision rendered on 23.05.2019, after examining the decisions earlier rendered by the Tribunal as also the Master Circular dated 23.08.2007 answered the reference by stating that a sub-contractor would be liable to pay service tax even if the main contractor discharged the service tax liable on the activity undertaken by the sub-contractor in pursuance of the contract. Such being the position, the order passed by the Commissioner to the extent it drops the demand raised in the show cause notice dated 22.10.2010 in regard to the work undertaken by the sub-contractor for the main contractor WPIL Limited and DC Industrial Plant Services Pvt. Ltd. pursuant to the contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded the matter on 27.11.2013; and the appeal was filed before the Tribunal in 2014. In such circumstances, we consider it appropriate to examine this issue instead of remitting the matter to the Commissioner for taking a decision. 10. It cannot be disputed that prior to the issuance of the show cause notice and the Master Circular dated 23.08.2007, sub-contractors were not discharging their service tax liability because of decisions of the Tribunal and this fact has also been noticed by the Larger Bench while referring to the decision of this Tribunal in Urvi Construction vs. Commissioner of Customs [2010 (17) STR 302]. The Larger Bench also referred to a number of decisions which had taken view that a sub-contractor was not required to d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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