2017 (5) TMI 1197

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Site Formation and Clearance Service', Manpower Recruitment and Supply Agency and Commercial and Industrial Service w.e.f. 16/06/2005 to their principal contractor. For 'Site Formation and Clearance Service and Manpower Recruitment and Supply Agency', they have not taken any service tax registration and did not pay any service tax as a sub-contractor. The department has issued show cause notice dated 18.03.2008 for the period 16/06/2005 to 30/09/2007 for an amount of Rs. 11,08,009/-. The Adjudicating Authority confirmed the demand along with interest and imposed penalties under Section 76, 77 and 78 of the Finance Act, 1994. In appeal, the Commissioner (Appeals) set aside the order of Adjudicating Authority, aggrieved from which....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d by the Board and their scope or validity. Most of the circulars issued by the Board are to explain the intentions of particular provisions of Customs, Central Excise and Service Tax. These circulars also give interpretation of law. Circulars are generally issued with reference to a particular commodity or service and explains the relevant law at that point of time. There is no concept of withdrawing or superseding the circulars in general. It is only when Board changes its view on a issue consequent to the decision of the Hon'ble Supreme Court, Hon'ble High Court or this Tribunal or for some other reason that the circulars are modified or superseded. However, the circulars are to be applied only as per law as it exists at that point of ti....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....a given taxable service is intended for use as an input service by another service provider does not alter the taxability of the service provided. At times circulars are also used by the Board to take care some administrative difficulties in the administration of tax as particular way of implementation may cause undue hardship. Service tax was introduced in 1994 on three services, in 1996 another three services were added and in 1997 additional three services were brought under the service tax net. At that point of time service tax was not covered by Cenvat credit system i.e. credit of input services or inputs was not available while providing any other output service. Around 2002, concept of Cenvat credit was extended to the services and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s extended to services, no such circular has been issued in respect of any of the services which became taxable in 2002 or afterwards. Even in respect of services which were taxable before 2002, the earlier circulars became redundant in view of the change in law. Learned Advocate's argument that the old circulars were withdrawn only with the issue of Master Circular on 23-8-2007 is not relevant at all, particularly in view of the fact that the service being dealt in the present case is Commercial or industrial construction service which become taxable when the Cenvat credit scheme was already available. The four circulars which were issued in 1997-1998, in respect of four specified services were in any case redundant even in respect of ....