TaxTMI 
TaxTMI 
2018 (9) TMI 662
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.... a holder of service tax registration under the category of "Telecommunication Service" taxable under Section 65(105) (zzzx) of the Finance Act, 1994 (Act for short). The department alleged short payment of tax on part of the appellant for a period of year 2011-12 and 2012-13 and the non-payment of service tax on the gross amount charged for the period of year 2009-2010 to 2013-14. The said telecommunication services are being provided by the appellant under the name and style of Universal Service Operator (USO) having telecommunication operator like M/s. Bharti Hexacom Ltd. Jaipur, M/s. Reliance Communication Ltd, Jaipur, M/s. Vodafone Jaipur being the service recipient of telecom towers installed by BSNL at various sites in Rajasthan. The....
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....ied upon the fact that the appellant and M/s. CMST BSNL have different Service Tax registration. The fact still remain, is that they both are one and the same entity. As is very much apparent from the fact that both share the same PAN number. The order is accordingly prayed to be set aside. Appeal is prayed to be allowed. 6. While rebutting these arguments, ld. DR has impressed upon that separate registration under service tax make the entities as two different concern as that of an associated concern. Thus there is no wrong in the order under challenge. The ld. DR also impressed upon Section 67 of the Finance Act, 1994 the explanation there of as has rightly been considered by the adjudicating authority below. It is impressed upon th....
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....ises as per Section 92 A of the Income Tax Act, 1961. Here in this case both the appellant and CMTS-BSNL are units/office of one and the same company i.e. BSNL. In view thereof we are of the opinion that the adjudicating officer has not appreciated the fact that monthly advice debit notes from one unit EE-BSNL, Jaipur are nothing but transfer of expenses through book entry to another unit of the same Circle and for taxability under the service tax law, it is mandatory that the services has to be provided to a different unit and the receiver of the taxable service must be a distinct entity. In the instant case, the book entry through debit advice note has been made by the appellant for transfer of expenses to another unit of BSNL i.e. CMTS a....
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....case in hand. Hence the transaction between the two cannot be termed as provision of service and hence no service tax is payable Hon'ble Apex Court in the case of All India Federation of Tax practitiers case 2007(7) STR 625 SC has held that service tax is imposed every time service is rendered to a customer or client, as per Section 65 (105) (zzzx) of the Finance Act, 1994. Thus taxable event is held to be each activity of service provider to a service recipient. This makes it clear that service provided to one own self is not the taxable event. Once this is the situation Section 67 of the Act has no applicability nor will be relevant the explanation in sub section 4 thereof. We therefore are of the opinion that adjudicating authority be....