𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗳𝗼𝗿 𝗦𝘂𝗯-𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝗼𝗿𝘀 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗿𝘂𝗹𝗲𝗱: "As the main contractor has discharged the entire Service tax liability on the total value of the contract, including the value of services provided by the sub-contractor, tax cannot be demanded from the sub-contractor."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Thakarshi J Likhiya 𝗜𝘀𝘀𝘂𝗲: The appellant, Thakarshi J Likhiya, a sub-contractor, believed in good faith that no service tax liability applied to him, as the main contractor had already discharged the tax on the full contract value.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that the sub-contractor is not liable for service tax since the main contractor already paid the full tax on the contract value, creating a revenue-neutral situation. Although liability was sustainable on merit, it was barred by limitation, thus rendering the demand unsustainable.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Thakarshi J Likhiya vs. Commissioner of Central Excise & ST, Rajkot 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 11490 of 2014-DB 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 19 June 2023 📜 This ruling reinforces that sub-contractors are not liable for service tax if the main contractor has already discharged the tax liability on the full contract value.