2013 (6) TMI 705 - AT - Service Tax

Branch Services to Head Office Not Taxable

The case involved the liability of the respondent to pay Service Tax on maintenance and repair services provided to the Head Office. The CESTAT Mumbai ... - Revenue appealed against an Order-in-Appeal setting aside Service Tax demand on maintenance and repair charges billed by a unit to its Head Office. The respondent had raised bills for maintenance and repairs and later cancelled some invoices, subsequently issuing fresh invoices to the Head Office. Revenue's sole contention was that such re-invoicing evidences provision of taxable service by the branch to the Head Office, warranting Service Tax. The lower appellate authority had held that 'services rendered to self is not service' and set aside the demand. The Tribunal found no merit in Revenue's contention, noting that inter-unit billing within the same entity does not amount to a taxable service. The Tribunal expressly held that 'Service by the branch to Head Office cannot be considered as a taxable service.' The appeal was dismissed as devoid of merits.