2018 (2) TMI 84

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....f the Finance Act, 1994. During the period under dispute, they were working as sub-contractor of M/s Delhi Assam Roadlines Corporation Ltd (DARCL), who was the main contractor for rendering service to M/s Vedanta Aluminum Limited. During the course of audit of the books of accounts of appellant in 2011, it was noticed that the appellant has not discharged Service Tax liability towards the amount received for providing Cargo Handling Services. After completion of investigation and issue of SCN dated 18.10.2012, Service Tax amounting to Rs. 3,52,59,280/- was demanded along with interest and penalty. The same was confirmed by the impugned order and an amount of Rs. 2,79,44,410/- already paid by the appellant during the course of investigation ....

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....so a service provider and is required to discharge Service Tax on the service provided by him to the main contractor. In terms of the Cenvat Credit Rules, 2004, the main contractor will be eligible to avail Cenvat credit of the Service Tax paid by the sub-contractor. He, accordingly, submitted that no exemption can be granted to the appellant from payment of service tax on the ground of being a sub-contractor. 5. We have heard both the sides and perused the appeal record. There is no dispute about the fact that appellant is a service provider and has provided Cargo Handling Services to M/s Vedanta Aluminum Limited as a sub-contractor of M/s Delhi Assam Roadlines Corporation Limited (DARCL), who was the main contractor. But the appellant ....

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....s to be paid by main service provider." Xerox copy of DGST clarification is enclosed herewith for your ready reference and record. As per the above said clarification, the liability of service tax case upon DARC as be in the main service provided to M/s Vedanta Aluminium Ltd and DARC has properly fulfilled it. In this regard, we do hereby enclose herewith the followings:- 01) Letter No.DARC/Ser.Tax/22/7220 dt. 23.12.2008 that the liability of service tax is upon DARC. 02) Service Tax Registration Certificate as obtained from CBEC site. 03) Challan From the above it's clear that on this service, the liability of service tax will cast upon DARC and not upon us." 6. After going through t....