TaxTMI 
TaxTMI 
TaxTMI 
2018 (11) TMI 746
X X X X Extracts X X X X
X X X X Extracts X X X X
....how Cause Notice dated 21/10/2008 was issued alleging that the appellant is engaged in providing taxable service under the category "Consulting Engineering" to various units and plants of the Steel Authority of India Limited. The Show Cause Notice also alleged that such units and plants under SAIL make use of technical/engineering consultancy and assistance in their manufacturing enterprises. 2. The Adjudicating Authority vide the impugned order, confirmed the demand of Service Tax amounting to Rs. 12,38,56,428/- only for the period 2003-04 to 2007-08 along with interest and imposed penalty of equal amount both under Section 76 and under Section 78 and also imposed penalty of Rs. 1,000/- under Section 77 of the Finance Act, 1994. Hence, th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n of expenditure towards the projects should not be considered as monetary consideration received by the appellant as the said transaction get negated at the time of final consolidation of accounts. It is his submission that the book adjustments by way of debit advices/notes from one unit to another unit are nothing but transfer of expenses through book entry. For taxability of Service Tax, it is mandatory that the Services should be provided to a distinct separate entity. The Ld. Advocate also argued that the extended period of limitation is not invokable in the present case. It is his submission that since all the relevant facts were before the Department since 2004, there was no occasion for issuance of the show Cause Notice and the Sh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g 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 that bare reading of this provision makes it abundantly clear that even the book adjustment qua the transaction of taxable services with any associated enterprise are taxable. Justifying the order, ld. DR has prayed for appeal to be dismissed. 7. After hearing both the parties and observing the entire records, we observe and hold as follows: The main issue to be adjudicated is as to whether the appellant has to pay service tax on the services provided to M/s. CMST-BSNL, Jaipur which is having a separate service tax registration. P....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eceiver 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 and it will not make the gross transaction accounted for between units of the organization. The appellant has placed reliance on a decision of the Hon'ble Rajasthan High Court in the case of CCE Vs. BSNL [2016 (43) STR 540 (Raj.).]. We find that the said decision is related to availment of cenvat credit transferred by the Head office to assessee on Advise of Transfer. In this case the credit has been found admissible on the ground that the assessee and the Head office fell in the same circle of BSNL. In the instant case also the appel....