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Informative

Sub-contractor of Works Contract was also exempt from Service Tax if main contractor was exempt from it: CESTAT Sets aside Demand of Service Tax

Update / Judgement Date

27 May 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Excise, VAT & Custom

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has exempted sub-contractors from service tax liability if the main contractors for the same project are already exempt. The tribunal quashed a ₹1.3 crore demand, ensuring that the benefit of exemption flows through the entire service chain and prevents double taxation.