2018 (12) TMI 382

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....ica (India) Ltd were providing service to Indian Oil Corporation Ltd and part of the work was sub-contracted to the appellant. Ld. Counsel argued that since the main contractor had paid service tax, they were not liable to pay any service tax. In support of his claim that the main contractor has paid service tax, he produced certificate from the main contractor wherein they have stated that they have paid service tax for the service given to Indian Oil Corporation Ltd. Ld. Counsel argued that since main contractor has paid tax any liability of tax on the appellant would amount double taxation. 3. Ld. Counsel argued that period involved in the demand is July, 2003 to Oct, 2006 and nature of service given by them was work contract service. H....

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....d work for offsite and utilities for the up gradation project at Gujarat Refinery of Indian Oil Corporation Ltd, Vadodara, being undertaken by M/s Furnace Fabrica (India) Ltd, therefore, no tax liability should be fixed on the appellant being a sub-contractor of M/s Furnace Fabrica (India) Ltd. We find that Finance Act, 1994 places liability on each service provider separately and independently. The Cenvat Credit Rules take credit of payable service part in so much as that service tax paid by person providing service to service recipient is available as cenvat credit to the service recipient. The said cenvat credit can be used to discharge the service liability of the service recipient. In some cases where there is Revenue neutral situation....