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Service Tax Payment by Contractor on main Contract

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Service Tax - Liability to pay service tax on the obligations sub-contracted to the petitioner by main contractor – Service tax payment by Contractor on main contract, liability to pay service tax by petitioner (sub-contractor) on sub-contracted portion – Demand confirmed by Settlement Commission – Appellant provided services to different clients for contracted tour and providing bus services on contract basis

HELD - There is an independent contract for providing transportation services / bus services, between the petitioner and M/s M&M (Mahindra & Mahindra) / M/s MLL (Mahindra Logistics) and even between M/s MM / M/s MLL and M/s AMW Ltd - The petitioner cannot be said to be a sub-contractor with respect to the transportation services provided to M/s.AMW Ltd. and therefore, the contention of the petitioner that M/s.MM / M/s.MLL paid service tax on the transportation services rendered to M/s.AMW Ltd. and therefore, the petitioner is not liable to pay service tax and/or the contention that there shall be double taxation if the tax is recovered from the petitioner, has no substance and the same cannot be accepted. The service tax paid by M/s.MM / M/s.MLL with respect to transportation services provided to AMW is with respect to the separate and independent contract - The agreement / contract entered into between the petitioner and M/s.MM / M/s.MLL is an independent contract for providing services of transportation and therefore, the petitioner is not a sub-contractor and therefore, the petitioner is liable to pay service tax on the transportation services / bus services provided by the petitioner to the M/s.MM / M/s.MLL. Under the circumstances, the petitioner is not entitled to any of the reliefs - Assessee contention that proceedings before the Settlement Commission can be said to be an alternate to regular and normal adjudication proceedings – HELD - Considering the provisions of the Act more particularly Section of Chapter V of the Act, by no stretch of imagination it can be said that the proceedings before the learned Settlement Commission is an alternate to adjudication proceedings - Technically speaking, proceedings before the Settlement Commission cannot be in strict-senso said to be an alternate to the adjudication proceedings - With respect to such questions, appropriate remedy would be to proceed with the show cause notice, as the power of adjudication is vested with the appropriate authority - Assessee petition dismissed

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