Cenvet Credit

[Dharmendra Prajapati]

We are doing Earth Work activity in Gujarat. We are receiving Service Tax on Doing Job + Additional and we are making payment of Service tax regularly. But after 3 accounting year query raise by department that in 1st year we are doing some work by sublet by using machinery of some else contractor, now department demanding service tax payment liability on that contractor bill raise to us. so give us best solution for taking some way out???

AI Summary

Company Faces Service Tax Dispute Over Subcontracted Earthwork; Possible Defense Cites Statute of Limitations, Section 73 A company involved in earthwork activities in Gujarat is facing a service tax issue raised by the department after three years. The department claims that the company should have paid service tax on work subcontracted using another contractor's machinery. One respondent suggests contesting the claim based on the statute of limitations if there was no suppression of facts. Another respondent seeks clarification on whether the tax liability is being demanded from the company or the subcontractor, noting that liability exists if the subcontractor failed to pay service tax on their invoices.