2018 (4) TMI 849

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....r "Commercial or Industrial Construction Service" (CICS) as well as "Works Contract Service" (WCS). The dispute pertains to the period 01.07.2007 to 31.03.2012. The Department, during audit, observed that the respondent-assessee, in respect of three contracts, did not pay Service tax under the category of WCS. The respondent-assessee entertained a view that in respect of these three contracts, the main contractor for whom the respondent-assessee worked as a sub-contractor, has already discharged the Service tax liability on the entire project and hence they were not required to pay any Service tax. After issue of show cause notice dated 23.04.2012 the Adjudicating Authority passed the impugned order in which the entire Service tax demanded ....

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....input services. The fact that a given taxable service is intended for use as input service by another service provider does not alter the taxability of the service provided". (iv) The above circular implicitly stated that the services provided by the sub-contractor were liable to Service tax but the Adjudicating Authority has wrongly held that demanding Service Tax from the respondent-assessee would amount to double taxation. (v) He further relied on various case laws in which the Tribunal has considered the above circular and has held that the sub-contractor is liable to payment of Service tax even when such activity is sub-sumed into the activity of the main contractor for payment of Service tax. He relied on the following case laws: ....

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....-contractor. (ii) He argued that the Adjudicating Authority has verified from the record of the case that the value of service rendered by the respondent-assessee was included in the value of taxable service on which the main contractor has paid the Service tax. To this effect letters were received by the respondent-assessee from the main contractor and such letter were already placed before the Adjudicating Authority. (iii) He further referred to several case laws in which various Benches of the Tribunal as well as High Court have held that once the main contractor has discharged the Service tax, the sub-contractor is not required to pay Service tax. In this connection he relied on the following case laws: (a) BCC Developers and Promot....