#Service Tax Liability

CESTAT Ahmedabad rules that sub-contractors remain liable for service tax even if the main contractor has discharged the liability, but directs recomputation under Section 67(2) of the Finance Act, 1994 to avoid double taxation. The ruling clarifies that CENVAT credit must be applied to prevent unjust enrichment, impacting sub-contractors and tax practitioners dealing with service tax disputes.

CESTAT Chennai rules that bareboat charter agreements, which transfer possession and control of vessels to charterers, do not qualify as 'supply of tangible goods service' under service tax law. This decision exempts such arrangements from service tax liability, providing clarity for businesses engaged in vessel leasing and dredging operations.

CESTAT rules that a partnership firm cannot be held liable for service tax demands arising from its predecessor proprietorship without a fresh show cause notice. The decision underscores the legal distinction between entities, protecting businesses from retrospective tax liabilities post-conversion.

CESTAT Chennai rules that service tax cannot be levied on builders for construction activities prior to 01.07.2010, as the Finance Act 2010 was the first legislative enactment to tax works contracts. The ruling clarifies that retrospective demands for pre-2010 periods are invalid, providing relief to developers and contractors.