Revenue's Appeal Dismissed for Missing Limitation Challenge. Sub-contractor's Service Tax Liability Remanded for Limitation Reconsideration.

The Commissioner dismissed the Revenue's appeal due to failure to challenge the limitation period. The appellant's appeal, concerning service tax liability as a sub-contractor when the main contractor pays, was considered time-barred. The Commissioner found the extended limitation period unnecessary and remanded the appellant's appeal for reconsideration on the limitation issue. The judgment was delivered by Mr. Ramesh Nair on 14/6/2017.

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Issues involved:
Whether a sub-contractor is required to pay service tax on construction services when the main contractor is already paying the tax on the total contract value.

Analysis:
1. Revenue Appeal No.ST/85398/14:
- The Commissioner set aside the demand on both merit and time bar.
- The Revenue challenged the merit but not the limitation.
- The dropping of demand on limitation was final.
- The Revenue appeal was dismissed as it did not challenge the limitation.

2. Appellant's Appeal No.ST/86291/13:
- The demand in this appeal was for the same period as in the Revenue appeal.
- If demand for the same period is time-barred in one case, it cannot be invoked in another.
- The appellant argued that as a sub-contractor, they are not liable for service tax since the main contractor has paid it.
- The appellant cited circulars and various judgments to support their case.

3. Findings and Conclusion:
- The Commissioner held that the extended period of limitation was unwarranted.
- The Revenue's appeal was dismissed as it did not challenge the limitation.
- The demand for the same period in the appellant's appeal was considered time-barred.
- The matter of the appellant's appeal was remanded to the Commissioner for re-consideration on the issue of limitation.
- The judgment was pronounced on 14/6/2017 by Mr. Ramesh Nair, Member (Judicial).

This detailed analysis of the judgment highlights the key arguments presented by both parties, the Commissioner's findings on limitation, and the ultimate decision regarding the liability of the sub-contractor for service tax on construction services.

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