2026 (7) TMI 1781

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....nue : Mr. S.K. Roy and Mr. Rohit Issar, Authorized Representatives ORDER PER: MS. BINU TAMTA: Challenge is to the impugned order [Order-in-Appeal No. RPR-EXCUS-000-APP-225-24-25 dated 25.07.2024] allowing the appeal filed by the Revenue against the dropping of the demand by the Assistant Commissioner holding that once the principal contractor has paid the service tax, the sub-contractor i....

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....i) Whether the extended period of limitation under Section 73(1) proviso of the Finance Act, 1994 [The Act] can be invoked as there were divergent views of the Tribunal. 4. The issue on merits regarding the liability of sub-contractor to pay service tax when the main/principal contractor has paid the tax has been decided by the Larger Bench of the Tribunal in the case of CST New Delhi vs Melang....

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.... Delhi] (b) Essem Erectors vs. CCE, Nagpur [2025 (1) TMI 143 - CESTAT Mumbai] (c) Rigtech Power vs. CCE & ST, Dibrugarh [2026 (2) TMI 433 CESTAT Kolkata] 6. On the contrary, the Ld. AR has referred to the Master Circular No. 96/7/2007-ST dated 23.08.2007, clarifying that sub-contractor is essentially a taxable service provider as the services provided are used by the main serv....

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....he extended period of limitation and in absence thereof, it cannot be said that the appellant has willfully suppressed the facts to evade the payment of tax. Secondly, I find that the issue as to the liability of the sub-contractor to pay service tax was settled by the decision of the Larger Bench and before that there were contradictory views. It being an interpretational issue, the extended peri....