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2012 (12) TMI 234 - AT - Service TaxDemand of Service Tax - self service - services provided to units/branches of M/s SAIL (assessee) - held that - There is no dispute that the applicant is an unit of M/s SAIL and the other units are also part of M/s SAIL. - Service provided to self is not liable to service tax - applicants are able to make out a prima facie case for total waiver of pre-deposit in their favour - stay granted. Decision in the case of INDIAN OIL CORPORATION LTD. Versus COMMISSIONER OF C. EX., PATNA - 2007 (5) TMI 135 - CESTAT, KOLKATA followed.
Issues:
1. Change of Cause Title 2. Waiver of pre-deposit of service tax and penalties Change of Cause Title: The applicant sought to change the Cause Title from M/s SAIL to M/s Centre for Engineering & Technology, claiming the latter is a unit of M/s SAIL. The Tribunal allowed the change, noting the connection between the two entities. The application for stay was also considered in this context. Waiver of Pre-deposit of Service Tax and Penalties: The applicant, a unit of M/s SAIL, applied for waiver of pre-deposit of service tax amounting to Rs. 12.68 crore and corresponding penalties under various sections of the Finance Act, 1994. They argued that services provided to outsiders were taxable, while in-house services to units of M/s SAIL were not. The applicant presented registration documents and ST-3 returns to support their claim. The Department contended that funds were allocated between units, with debit notes issued for service value. The Tribunal observed that the applicant and other units were part of M/s SAIL, and service to self was not taxable based on precedents. Consequently, the Tribunal granted a prima facie case for total waiver of pre-deposit and stayed the recovery of dues during the appeal process. This judgment addressed the issues of changing the Cause Title and waiver of pre-deposit of service tax and penalties. It emphasized the connection between the applicant and M/s SAIL, leading to the decision on the tax liability for services provided. The Tribunal considered registration documents, ST-3 returns, and precedents to support its ruling in favor of the applicant.
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