2024 (7) TMI 1743

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....iate consultant for several foreign based consulting engineering firms, including M/s. Louis Berger, M/s Frischmann Prabhu (India) Pvt Ltd, M/s Dorch Consultant (India) Pvt Ltd and M/s. Renardet S.A Ingenieurs. The said main/prime consultants have discharged their service tax on total consultancy charges including the consultancy fees paid to the appellant. Therefore, the appellant have not paid the service tax on the consulting engineer service provided by them as sub/associate consultant. The show cause notice dated 20.10.2008 was issued for the period F.Y 2005-2006 and 2006-2007 proposing the demand of Rs. 30,71,200/- along with interest and equal penalty under Section 78 of the Finance Act, 1994. Another show cause notice was issued for....

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....cular whereby the appellant is not liable to pay the service tax was prevailing prior to 23.08.2007. Even though vide circular dated 23.08.2007 the sub-contractor was made liable to pay the service tax but before this date as per the earlier circular of 1997, the service tax cannot be demanded. He further submits that since there were contrary views and the matter was finally decided by the larger bench in the case of Commissioner of Service Tax, New Delhi vs. Melange Developer - 2020 (33) GSTL 116 (Tri.- LB) the demand for extended period does not sustain on limitation. 2.2 As regard the demand of cenvat credit amounting to Rs. 61,200/-. He submits that the Adjudicating Authority has wrongly denied the credit by invoking the wrong rule ....

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....ive whether the main contractor discharge the service tax. Accordingly, from 23.08.2007 the appellant being a sub - consultant became liable to pay the service tax. Prior to this date during the currency of 1997 circular, the appellant is not liable to pay the service tax as settled by the Hon'ble Apex Court in various judgments that the benefit flowing from the circular cannot be denied and the circular dated 23.08.2007 cannot be made applicable retrospectively. Therefore, we hold the demand of service tax prior to 23.08.2007 is not sustainable. 4.1 The appellant have submitted that they have discharged the service tax with effect from 23.08.2007, therefore, the demand for the period 23.08.2007 onwards will not sustain. There is one ....