2013 (1) TMI 547

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.... Making Service' which is a taxable service and rendered the said service during the period from 2005-06 to 2007-08 to Monarch Surveyors and Engineering Consultants Pvt. Ltd., which is a related firm of the appellant. But they did not pay the service tax on the ground that the main contractor, namely, M/s Monarch Surveyors and Engineering Contractors Pvt. Ltd., have discharged the service tax liability on the value inclusive of the service charges received by the appellant. 3. The department was of the view that the appellant being the service provider, notwithstanding the fact that he is a sub-contractor, is required to discharge service tax liability and accordingly, demanded and confirmed service tax amounting to Rs.9,58,231/- along w....

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....tended to the service tax, the CBEC had, on a number of occasions, clarified that if the main contractor discharges the service tax liability, the sub-contractor need not pay service tax on the same activity and only in August, 2007 the Board issued a clarification in the matter vide Circular No. 96/7/2007-S.T. dated 23/08/2007 wherein it was clarified that the services rendered by the sub-contractors are in the nature of 'input service' and, therefore, service tax is leviable on any taxable service provided, whether or not the services are provided by a person in his capacity as a sub-contractor and whether or not such services are used as 'input service'. In the present case, the bulk of the period involved is prior to the issue of the ci....