Third-party payment of service tax can discharge the assessee's liability under a works contract notification.

Service tax liability under a works contract notification was treated as discharged where the service provider paid the entire tax on the appellant's behalf. The Tribunal applied the principle that tax paid by a third party for the assessee is regarded as payment by the assessee itself, so the appellant could not be fastened with any further demand despite being otherwise liable for 50% under the notification.

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Issues: Whether service tax liability survived against the appellant when the service provider had paid the entire tax, though the appellant was otherwise required to bear 50% under the applicable notification.

Analysis: The appellant had received services under a works contract arrangement governed by Notification No. 30/2012 dated 20.06.2012. The dispute was whether the appellant could still be fastened with tax liability even though the service provider had deposited the whole service tax amount. The payment by the service provider was treated as payment made on behalf of the appellant, and such payment was taken to satisfy the appellant's liability. The Tribunal relied on the principle that tax paid by a third party on behalf of the assessee is to be treated as payment by the assessee himself.

Conclusion: The appellant's service tax liability stood discharged through payment by the service provider, and no further demand could be sustained.

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