9911796707
TMI Blog2023 (6) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... ld have reduced therefore, it is clearly a case of Revenue neutral. Moreover, on this issue the board had issued Circular No. 23/3/97-ST dated 13.10.1997, TRU letter F.No. 341/18/2004-TRU (Pt.) dated 17.12.2004 whereby the Board had clarified that when the main contractor has discharged the service tax on the total value of the contract, the sub-contractor need not to pay service tax. However, subsequently the board has reversed their view and by Circular No. 96/7/2007-ST dated 23.08.2007 clarified that sub-contractor is required to pay service tax. Besides this contradictory Circular, the matter was also under litigation before various forums and finally the Larger Bench of the Tribunal in the case of Melange Developers Pvt. Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esent matter. He further submits that there is no Revenue loss to the exchequer as on the total contract value, the main contractor has discharged the service tax. For this reason also the appellant had bonafide belief that there is no liability to pay service tax accordingly, the extended period cannot be invoked. He placed reliance on the following judgments:- (a) Laxmi Engineering P. Limited 2023 (4) TMI 348-CESTAT AHMENDABAD (b) Sharma Decorators 2023 (4) TMI 351 CESTAT New Delhi (c) Shanti Construction Co 2023 (3) TMI 14 CESTAT Ahmedabad (d) Heena Enterprises and MK Enterprise 2022 (7) TMI 1182 CESTAT Ahmedabad (e) CESTAT Ahmedabad order No. M/16066/2014 dated 04.12.2014 in the case of M/s. Thaka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice tax. Besides this contradictory Circular, the matter was also under litigation before various forums and finally the Larger Bench of the Tribunal in the case of Melange Developers Pvt. Limited (supra) held that sub-contractor is required to pay service tax. The said judgment was delivered in 2020. Accordingly, the appellant had bonafide belief that there is no liability to pay service tax being a sub-contractor. The decision cited by the learned Counsel directly on the point of limitation in case of liability of service tax on the sub-contractor. The ratio of the decisions cited supra is directly applicable in the present appeal. Accordingly, we are of the considered view that the demand though on merit is sustainable but it is clearl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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