2015 (3) TMI 791

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.... tax depends upon the adjustment of the two. It arises in these two tax cases from the order dated 02.11.2010 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (the Tribunal) in Service Tax Appeal - 92 and 851 of 2008. THE FACTS 2. Bhilai Electric Supply Company Pvt. Ltd. (the BESCL) gave a contract to set up an electric power plant to Bharat Heavy Electricals Limited (the BHEL) on 08.07.2005. 3. Out of the work awarded to the BHEL, the BHEL sub contracted the work relating to work of land development (earth excavation, back filling, site levelling, grading, disposal) etc. to the Assessee. 4. The Assessee developed the land during the period  08.07.2005 to 07.08.2006 and received payment from the B....

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....rtly allowed the Appeal-92 of 2008 and remanded it back to the AO. Nonetheless, it recorded the Following findings against the Assessee: (i) The sub contractor is liable to pay service tax even if the contractor has paid service tax; (ii) The extended period of time is invokable; (iii) Apart from other penalties and fine, penalty under section 78 of the Act was also payable. 11. Against the aforesaid order, the Assessee has filed Tax Case- 58 of 2011. 12. Appeal-851  of 2008 was consequential to other Appeal- 92 of 2008. As the other appeal was being remanded, the Appeal-851 of 2008 was also remanded back to the AO by the same order for fresh adjudication. The Assessee has filed Tax Case-57 of 2011 against the same. T....

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....se tax has been deposited by the contractor, then the sub contractor is not liable to deposit the tax; • The  circular issued by the Board are binding upon the Department. They themselves indicate the principle that tax has to be paid only once and in case it has been paid by the main contractor, then it is not necessary for the sub-contractor to deposit the same; • In this case, the ultimate service receiver was BESCL. The service  was provided by the BHEL through the Assessee. On the service provided to the BESCL through the Assessee, the BHEL has paid the service tax. The Department is not entitled to receive the tax For the second time; • Assuming, though not admitting that the Assessee i....