2025-VIL-1022-CESTAT-DEL-ST
  1. Home
  2. 2025-VIL-1022-CESTAT-DEL-ST

SERVICE TAX CESTAT Cases

Service Tax – Sections 68 and 78 of Finance Act, 1994 – Construction of residential complex – Appellant/sub-contractor was engaged in providing construction of residential complex services, but had failed to pay service tax on payments received from main contractor – Department issued show cause notice proposing demand of Service Tax on payments received by Appellant for services provided to main contractor – The adjudicating authority dropped demand proposed in SCN. Commissioner (Appeals) set aside order-in-original and upheld demand along with equal penalty under Section 78 of the Act – Whether Appellant is liable to pay service tax on payments received for services provided to main contractor – HELD – It is an admitted fact that Appellant was a sub-contractor. The Section 68 of the Act provides that every person, which would include a sub-contractor, providing taxable service to any person shall pay Service Tax at rate specified. In absence of any exemption granted, sub-contractor has to discharge tax liability – Post 1.7. 2012, the services provided by Sub-contractor was exempted only if the services provided by the main contractor were exempted. If main contractor was liable to Service Tax, sub-contractor was also liable to Service Tax. In the instant case, the construction of residential complexes was not exempt from service tax duty. Hence, the sub-contractors, viz. appellants were liable to discharge their service tax liability on such services provided by them to the main contractor - Appellant/sub-contractor is liable to discharge service tax liability on services provided by them to main contractor – There is no infirmity in impugned order passed by Commissioner (Appeals) and hence, said order is upheld – The appeals are dismissed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Biweekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST changes in July '25
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?