Service Tax
TRT-2025-
Cestat Ahmedabad
Date:-11-11-22
In:-
Issue Favourable to Tax Payer ?:-
Order Date: 11 November 2022
Facts:
- The appellant, J S Kataria, mainly carried out various works/services in relation to transmission of electricity namely concrete foundation, excavation of pits, establishment and maintenance of site for storage of materials relating to power transmission tower in the capacity of sub-contractor.
- The appellant have not discharged the service tax liability on the service provided to their main/principal contractor.
- In case of some service the appellant has charged and recovered service tax from service recipient, there the appellant has duly discharged the service tax liability.
- As regard non-payment of service tax, a show cause notice dated 08.09.2009 came to be issued raising the demand of service tax amounting to Rs. 1,17,30,336/- along with interest and penalty invoking extended period of limitation of sub-section (1) of section 73 of Finance Act, 1994.
- Being aggrieved by the said Order-In-Original, the appellant preferred the present appeal.
Issue:
- Whether the Appellant is liable to service tax?
Order:
- The authorities observed that as per notification no.45/2010-ST dated 20.07.2010 it is clear that all the taxable service provided by an assessee relating to transmission and distribution of electricity are exempted for the period up to 26th February, 2010.
- The period involved is prior to 26th February, 2010 entire period is covered under exemption therefore, the demand on the services in question except the demand on supply of tangible goods are exempted under Notification No.45/2010-ST.
- The authorities find that the appellant has acted as a sub-contractor. Earlier, there were contrary clarifications by the government that the sub-contractor is not liable to service tax when the main contractor is discharging service. Hence, there is no suppression of facts.
- Appeal is allowed.
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