Sub-Contractors Liable to Pay Service Tax Even if Main Contractor Has Already Paid: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that sub-contractors are liable to pay service tax even if the main contractor has already paid. This decision clarifies the tax liability in a sub-contracting arrangement, emphasizing that the service provided by the sub-contractor is an independent taxable service. While the main contractor might have discharged their service tax liability for the overall project, the sub-contractor must pay tax on the services they provide. This ruling ensures that revenue is not lost due to complex contractual structures and reinforces the independent nature of tax obligations for each service provider in a chain.