9911796707
TMI Blog2009 (9) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... independent concerns/companies having independent business activities and hence service tax was payable on the amount received from their HUF constituents. Commissioner (Appeals) set aside the order. In the light of the decision of Precot Mills Ltd. v CCE 2006 -TMI - 479 - Appellate Tribunal, Bangalore, held that- revenue itself acknowledged the existence of HUF and the other units as the constituents of HUF which was very evident from the records, thus the order of Commissioner (Appeals) uphold and appeal filed by revenue rejected. - ST/ 533 OF 2008 - 1119 OF 2009 - Dated:- 9-9-2009 - M.V. RAVINDRAN, JUDICIAL MEMBER P. KARTHIKEYAN, TECHNICAL MEMBER M. Ravi Rajendran for the Appellant. M.S.N. Naidu for the Respondent. ORD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order-in-original, demanded service tax and imposed penalty. Aggrieved by the Order-in-original that confirmed the demand of Service Tax, education cess and imposed penalties on the respondent, respondent preferred an appeal to the ld. Commissioner (Appeals). The ld. Commissioner (Appeals) after considering the submissions made before him, set aside the Order-in-original and allowed the appeal filed by the respondent. Revenue is aggrieved by such an order and they are in appeal before us. 2. Ld. DR would draw our attention to the grounds of appeal, which are as under :— (a) The Commissioner (Appeals) appears to have relied heavily on a certificate issued by a Chartered Accountant, the Registration Certificate for Professional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... separate entity for the purpose of levy of Service tax as service provider providing service to the other units who are clients. Further, it is a fact that M/s. Universal Travels issued debit notes on other units towards charges for services rendered which clearly establishes that it is a commercial concern. Thus, both the statutory requirements for levy of Service Tax as Manpower Recruitment or Supply Agency are satisfied. Admittedly, in the light of the above statutory provisions, the contention of the assessee that the services provided by them to other units of HUF are not taxable as all the HUF units constitute one legal entity is not acceptable. (e) As regards the imposition of penalties, the suppression of facts by the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities have in fact given Service Tax Registration to Ramoji Rao-HUF including all the services rendered by the respondent. It is his submission that when the respondent renders any service to any outsider, they discharge the appropriate Service Tax liability. It is his submission that it is on record that the respondent hereinabove has only given drivers to the constituent units of the Hindu Undivided Family ('HUF' for short). 4. We have considered the submissions made at length and perused the records. We find that the issue to be decided in this case is whether the services rendered by the respondent to the constituent units of HUF have to be considered as services rendered to any other person or a client. The findings of the ld. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f HUF, whereas the Appellants had produced Chartered Accountant Certificate and Registration Certificate of Profession Tax to prove that all the units belong to HUF. On 4-7-2008 they submitted a copy of letter issued by ACIT calling for records of HUF constituent units in support of their claim that all the units belong to HUF. Further, it is observed that the Appellant had got their name changed as Ramoji Rao-HUF in their service tax registration certificate from 12-9-2007. 7. When one unit provided service to other unit belonging to same HUF, it is as good as providing service to self. Issue of debit notes for the service rendered to other HUF units, as claimed by the Appellants, is to have proper control on 'the activities of different ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent relationship in the present transactions. In these circumstances, no penalty is leviable. Thus we allow the appeal with consequential relief'. As per the judgment given by Hon'ble Tribunal in the above-cited case service tax need not be paid on the value representing the service provided to constituent of HUF." 5. It can be seen that there is no dispute as regards the services rendered by the respondent to the constituent units of HUF. It is also a fact not denied by the Revenue in their grounds of appeal. Further, we find that on 12-9-2007, the office of Central Excise, Hyderabad-III Commissionerate has issued a Service Tax registration to the Ramoji Rao-HUF wherein the services provided include the manpower recruitment agency, cab o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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