Separate service tax liability applies to subcontractors where the principal contractor paid tax under a different service category.

A subcontractor remains separately liable for service tax on its own taxable service where the service falls under a different category from that of the principal contractor. The Tribunal noted that the appellant's work was treated as Architect Service, while the main contractor had discharged tax under Consulting Engineer Service, and the cited circular supported separate taxation of each taxable service provider at the stage the service is rendered. Payment of tax by the principal contractor did not extinguish the subcontractor's independent liability, so the objection based on prior payment was rejected and the demand was upheld.

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Issues: Whether a sub-contractor remains liable to pay service tax when the principal contractor has already paid tax on the consultancy fee for a different category of service.

Analysis: The service provided by the appellant was treated as Architect Service, while the main contractor rendered Consulting Engineer Service. The circular relied upon by the Tribunal supported the position that where the subcontracted service is of a different category, payment of tax by the principal contractor does not discharge the subcontractor's separate liability. The Tribunal also followed prior authority holding that service tax is payable by each taxable service provider at the stage of provision of taxable service, and remittance by another provider does not extinguish that liability.

Conclusion: The subcontractor remained liable to pay service tax on its own service, and the plea based on payment by the main contractor was rejected.

Final Conclusion: The appeal failed on merits and the demand against the appellant was upheld.

Ratio Decidendi: Liability to pay service tax attaches to each taxable service provider separately, and payment by the principal contractor does not absolve a subcontractor when the services rendered fall under a different taxable category.

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