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TMI Blog2023 (12) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... work done by sub-contractor, is payable either by the sub-contractor or by the principal contractor and not by both. Further, the said issue was highly controversial as to liability of the sub-contractor to pay service tax, under the admitted facts that the main Contractor have discharged the tax liability. The said issue was referred to Larger Bench of this Tribunal in COMMISSIONER OF SERVICE TAX VERSUS MELANGE DEVELOPERS PVT. LTD. [ 2019 (6) TMI 518 - CESTAT NEW DELHI-LB] wherein it was held that although service tax being a destination tax liability, is only chargeable once on a transaction; But, in view of the mechanism of Cenvat credit available under the Cenvat Credit Rules, service tax can also be demanded from the Sub- Contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e also filed periodical returns (ST-3) regularly. The Appellant have also paid their admitted taxes as per returns. It was only subsequently, that the Revenue on verification of income tax returns, profit and loss statement and ledger accounts, it appeared that Appellant have rendered service under the head Survey and Exploration of Minerals, as a sub-contractor to M/s East Coast Engineering Company, Guntur and Vishesh Engineering Company, Guntur, during the period October 2005 to May 2007. Further, it appeared that Appellant have not paid Service Tax on rendering of such services as the sub-contractor, being of the belief and as per the contract, the Main Contractor have discharged the service tax liability. Admittedly, it was provision in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable either by the sub-contractor or by the principal contractor and not by both. Further, we take notice that the said issue was highly controversial as to liability of the sub-contractor to pay service tax, under the admitted facts that the main Contractor have discharged the tax liability. The said issue was referred to Larger Bench of this Tribunal in Melange Developers Pvt Ltd., [2019 (6) TMI 518 CESTAT, New Delhi] and the Larger Bench pronounced its judgment on 23.05.2019 wherein it was held that although service tax being a destination tax liability, is only chargeable once on a transaction; But, in view of the mechanism of Cenvat credit available under the Cenvat Credit Rules, service tax can also be demanded from the Sub- Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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