https://www.taxtmi.com/caselaws?id=751253 The CESTAT NEW DELHI held that the respondent was liable to pay service tax on excavation services provided as a sub-contractor during Oct 2010 to Sept 2015. The exemption notification 17/2005-ST only applies to excavation activities "in the course of construction," which was not established here. The tribunal rejected the argument that sub-contractors are exempt from service tax liability when main contractors have discharged their obligations. However, the matter was remanded for recalculation of demand considering amounts already deposited and for correcting penalty calculation, as the 50% penalty rate was incorrectly applied to the pre-April 2011 period. en-us Wed, 10 Apr 2024 00:00:00 +0530 Wed, 10 Apr 2024 12:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751253 The CESTAT NEW DELHI held that the respondent was liable to pay service tax on excavation services provided as a sub-contractor during Oct 2010 to Sept 2015. The exemption notification 17/2005-ST only applies to excavation activities "in the course of construction," which was not established here. The tribunal rejected the argument that sub-contractors are exempt from service tax liability when main contractors have discharged their obligations. However, the matter was remanded for recalculation of demand considering amounts already deposited and for correcting penalty calculation, as the 50% penalty rate was incorrectly applied to the pre-April 2011 period. Case-Laws Service Tax Wed, 10 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751253