TaxTMI 
TaxTMI 
2025 (12) TMI 224
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....ssued to demand Service Tax of Rs.13,18,116/- for the above period and for invoking extended period. After due process of law, the Ld. Adjudicating Authority confirmed the demand along with interest and imposed equal penalty under section 78 of the Finance Act, 1994. The appeal filed by the appellant was dismissed by the Ld. Commissioner (Appeals). Hence the present appeal. 3. The learned Advocate Shri V. Ravindran appeared for the appellant and Ld. Authorized Representative Smt. G. Kripa appeared for the respondent. 3.1 Learned Counsel Shri V. Ravindran, representing the appellant, stated that the appellant acts as dedicated sub-contractor, undertaking maintenance and repair of UPS systems for their Principal. The appellant receives commission for this work, on which service tax has been duly paid, with no dispute arising in this regard. Additionally, the appellant collects repair charges from customers on behalf of the Principal and remit these amounts to the Principal. The central issue in the present appeal pertains to whether the appellant is also liable to pay service tax on the aforementioned 'Maintenance or Repair Service' as classifiable under Section 65(105)(zzg) of....
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....97-TRU dated 11.07.1997 23 - 27 3.5. However service tax will not be payable in cases where a bill has been raised on a Rent-a-Cab Scheme operator, by another rent-a-cab scheme operator who has sub-let the motor cab to the latter operator provided who pays service tax on the amount bill to his client for renting out the motor cab so obtained by him. 5. Cir.B11/3/98 dated 07.10.1998/Trade Notice No.5/98 dt.14.10.1998 of Indore Commissionerate 28 - 31 3.6. Further, cases where an architect/interior decorator sub-contracts part/whole of his work to another architect/interior decorator, it is clarified that no service tax is required to be paid by the sub-contractor provided that the principal architect/interior decorator has paid the service tax on the services rendered by him to the client and provided the sub-contracting is in respect of the same service category. In other words, work is sub-contracted by one architect to another architect. In such cases, if the principal architect pays the service tax on services rendered by him to his client, the sub-contracting architect is not required to pay service tax...... Ld. Counsel further submitted that the demand re....
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.... do not cover 'Maintenance or Repair Service'. Further it has been noted in the OIO that the assessee had not stated anything or furnished any proof as evidence to show that their principal contractor had also provided the same service i.e. 'Maintenance and repair services' as stated under heading 'C. Market Research Agencies', of Boards Circular No. B11/3/98 dated 07.10.1998. In the absence of any such evidence reliance placed on the Boards circular are not sustainable. Apart from the above judgment the Ld. A.R. relied upon the following judgments/ Circular. a. Synergy Engineers Group Vs PC, CE & ST, Bhopal [2023 (73) GSTL 546 (Tri-Del)] b. Max Logistics Ltd Vs CCE, Jaipur [2017 (47) STR 41 (Tri-Del)] c. CST, New Delhi Vs. Melange Developers Pvt. Ltd. - 2020 (33) GSTL 116 (Tri. LB) d. Vinoth Shipping Services Vs. CCE, Tirunelveli - 2021 (55) GSTL 313 (Tri. Chennai) e. Vishal Engineering Company Vs. CCE, Panchkula - 2023 (9) CENTAX 154 (Tri. Chan.) f. Furnace Fabrics (India) Ltd. Vs. Joint Commissioner of Central Excise, Kochi - 2016 (43) STR 175 (Ker.) g. Board's Circular No. 138/7/2011-ST dated 06.05.2011 4. We hav....
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....le service provider outsources a part of the work by engaging another service provider, generally known as sub-contractor. Service tax is paid by the service provider for the total work. In such cases, whether service tax is liable to be paid by the service provider known as sub-contractor who undertakes only part of the whole work. A sub-contractor is essentially a taxable service provider. The fact that services provided by such sub-contractors are used by the main service provider for completion of his work does not in any way alter the fact of provision of taxable service by the sub-contractor. Services provided by sub-contractors are in the nature of input services. Service tax is, therefore, leviable on any taxable services provided, whether or not the services are provided by a person in his capacity as a sub-contractor and whether or not such services are used as input services. The fact that 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. 13. The Master Circular clarifies that the services provided by sub-contractors are in the nature of input services an....
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....rned, they are clearly qualified by the word "wilful" preceding the words "misstatement or suppression of facts" which means with intent to evade duty. The next set of words "contravention of any of the provisions of this Act or rules" are again qualified by the immediately following words "with intent to evade payment of duty". It is, therefore, not correct to say that there can be a suppression or misstatement of fact, which is not wilful and yet constitute a permissible ground for the purpose of the proviso to Section 11-A. Misstatement or suppression of fact must be wilful." (emphasis added) 7. Having found that the demand in this case is time barred, we find that the Hon'ble Allahabad High Court in Commissioner Customs, Central Excise & Service Tax Vs M/S Monsanto Manufacturer Pvt. Ltd. [2014 (35) STR 177 (ALL)], was of the view that once it is held that the demand is time barred, there would be no occasion for the Tribunal to enquire into the merits of the issues raised by the Revenue. In State Bank of India Vs. B.S. Agricultural Industries (I) [AIR 2009 SUPREME COURT 2210], the Supreme Court held that, if the complaint is barred by time and yet, the consumer forum deci....