TaxTMI 
TaxTMI 
2025 (4) TMI 1326
X X X X Extracts X X X X
X X X X Extracts X X X X
...., wherein the Ld. Commissioner has confirmed the service tax demand of Rs. 2,24,20,000/- along with interest and imposed equal amount of tax as penalty. 2. M/s. Hindustan Aeronautics Ltd, Barrackpore Division, ( herein after referred as the Appellant) submits that transfer of inter division unit and IFD charges are paid by one division to another division of the Appellant for using the infrastructure facilities of the latter unit. The said charges are notional and no actual consideration is paid by one division to another. These charges are accounted as 'charges received' in the supplying division and as 'charges paid' in the receiving division, which nullifies each other on consolidation of divisional Balance sheets at Corporate Office le....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t, the Appellant submits that they have maintained separate records for availing Cenvat credit for provision of taxable services. The Appellant submits that they have satisfied the condition of maintenance of separate records as required under Rule 6 of CCR. Therefore, Appellant is not required to pay any amount at rate of 5% on exempted goods as provided under Rule 6(3)(i) of CCR, 2004. The appellant submits that the figure of 2774.16 lakh of clearance of exempted goods in August 2009 as alleged in the order/SCN is without any basis and erroneous. As per the audited Balance Sheet & Profit and Loss Account of the Appellant, the figure for the entire financial year 2009-10 is Rs. 248.40 lakhs (Note 22 of audited Balance Sheet & Profit and Lo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....udication orders passed by other adjudicating authorities dropping the demands. We find that the same issue has been decided in favour of the appellant's other Divisions located at other places and the said decisions have been accepted by the department. For the sake of ready reference, the relevant paragraphs from the said adjudication Order Sl.No. BLR-EXCUS-003-COM- 36-37-15-16 dated 31.01.2016 dropping similar demand is reproduced below: - "12.2. Now I take up the issue relating to Service Tax demanded on IFD (Inter Factory Demand) charges. The allegation in the notice is IFD charges are paid by the other units of HAL for use of Infrastructure of Helicopter division and the service is taxable under Supply of Tangible of Goods Servi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fferent legal entity from the other units of the assessee who have paid IFD charges for use of Infrastructure. Therefore, I hold that in this case Helicopter division and the other units of the assessee who paid IFD charges for use of Infrastructure are part of same legal entity. Thus, I am inclined to accept the contention of the assessee that the services provided by Helicopter division to other units of HAL amounts to self service and Service Tax is not applicable on the services provided to self. Consequently, I hold that Service Tax demanded on IFD charges received by one division of HAL from another unit of HAL is liable to dropped." Thus, we find that the issue has already been settled and proceedings initiated against the appellan....