2026-VIL-1747-CESTAT-DEL-ST
  1. Home
  2. 2026-VIL-1747-CESTAT-DEL-ST

SERVICE TAX CESTAT Cases

Service Tax - Liability of sub-contractor when main contractor has paid service tax – Invocation of extended period of limitation - Appellant, a sub-contractor providing works contract services for painting of residential and public buildings, did not pay service tax, and the demand for the extended period was confirmed along with interest and penalties - Appellant contended that it entertained a bona fide belief that it was not liable to pay tax when the main contractor had paid the tax, as several Tribunal decisions held so, and that such a view would otherwise amount to double taxation - Whether the demand for the extended period can be upheld - HELD - It is agreed by both sides that the issue on merit is no more res integra in view of the Larger Bench decision, which held that a sub-contractor is liable to pay service tax even when the main contractor has paid the tax. There were several judgments prior to the Larger Bench decision which had held that a sub-contractor is not liable to pay service tax if the main contractor had already paid the tax. It is an admitted position that there was confusion regarding the liability to service tax of a sub-contractor, and therefore the extended period of limitation could not have been invoked - In identical cases involving the same issue, the Tribunal has set aside the demand for the extended period. Consequently, only the demand for the normal period of limitation can be sustained - The demand for the normal period is upheld along with the penalty under Section 72, and the demand for the extended period is set aside along with the penalty under Section 78 of the Finance Act, 1994. The order is modified and the appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA 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

Security-Code
New Code?

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.

Security-Code
New Code?

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?