Custom, Excise & Service Tax Tribunal
M/S. Edac Engineering Ltd vs Cst, Chennai on 19 December, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH AT CHENNAI ST/162/2007 (Arising out of Order-in-Original No. 100/2007 dated 20.06.2007 passed by the Commissioner of Service Tax, Chennai). M/s. EDAC Engineering Ltd. : Appellant Vs. CST, Chennai : Respondent
Appearance Ms. Minchoo, Adv., For the applicant Shri K.P. Muralidharan, AC (AR) For the respondent CORAM Honble Shri D.N. PANDA, Judicial Member Honble Shri MADHU MOHAN DAMODHAR, Technical Member Date of Hearing/Decision: 19.12.2016 FINAL ORDER No. 42444 / 2016 Per: D.N.Panda Appellant says that the payments received from M/s. TOYO Engineering India Ltd., Mumbai, M/s. Alstom Projects (I) Ltd., Durgapur and M/s. Technip India Ltd., for rendering Erection, Commissioning and Installation Service, have suffered tax in the hands of principle contractors. Therefore, appellant sub-contractor is not liable to service tax.
2. On the above averment, there was a direction to Revenue on the previous occasion to verify the veracity of the pleading of the appellant. Today ld. DR says that a report from the ld. Commissioner is yet to be received.
3. In view of the passage of time and no reply has come from Revenue, it is preferable to send the matter back to the ld. Adjudicating authority to verify whether the service rendered by the appellant has suffered tax in the hands of the principal contractors. If that is so, then, appellant shall not be liable to tax for the self same service. But, it is made clear that value addition being one of the object of taxation with the change of hands, that aspect has to be looked into by the authority to reach to the proper conclusion.
4. If the taxes have been paid duly in accordance with law, there may not arise interest and penalty. With the above direction, the matter is remanded to the adjudicating authority.
Dictated and pronounced in open Court)
(MADHU MOHAN DAMODHAR) (D.N. PANDA)
TECHNICAL MEMBER JUDICIAL MEMBER
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