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TMI Blog2011 (8) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... enue authorities relied upon the agreement dated 13.03.01 as RUD-I and treated the Appellant as a different taxable entry granting a separate registration to it - In the absence of such a charge and authorities not having proceeded with that concept the appellant succeeds holding that mere appearance of the figures of the appellant in the consolidated Balance Sheet of Sai Computer Pvt. Ltd. ipso facto does not bring the appellant to the fold law when the appellant was recognized by Authorities as a distinct entity - Appeal is allowed - ST/1472 OF 2010 (Cu)(DB) - ST/319 OF 2011 - Dated:- 1-8-2011 - D.N. PANDA, MATHEW JOHN, JJ. K.K. Anand for the Appellant. Sonal Bajaj for the Respondent. ORDER D.N. Panda, Judicial Member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the reading of the agreement in the discussion and findings of the order, he opined that the appellant (who was appellant No. l before him) was primarily required to work in relation to regular computer bills and accounting system for consumers of UP Power Corporation Ltd. 2.2 Analysing the meaning of the term 'business auxiliary service' as defined by the Finance Act, 1994 during different periods of time, ld. Appellate Authority came to the conclusion that it was the work of UP Power Corporation Ltd. to prepare the electricity bills and maintain the accounts of its consumers properly and the work related to billing and maintenance of accounts was done by the appellant on behalf of UP Power Corporation Ltd. To conclude so, he took shel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax on the entire receipts that appeared in such Balance Sheet. The Adjudicating Authority considering entire receipt as made by the appellant adjudicated the matter against it which is unreasonable. His further submission was that activity covered by scope of work was subjected to time schedule which was to be maintained by the appellant. 3.2 Reading page 70 of the appeal folder, Shri Anand, ld. Advocate submitted that the contract being executed by the appellant with the UP Power Corporation Ltd. and the appellant being signatory to the agreement was governed by the terms of agreement. Payments made to the appellant for the work done, UP Power Corporation Ltd. certified the same in terms of a letter No. 2422/PBB/LN/MRT/COMM/B/2, dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as only meetings the needs of its principal and the principal was serving on behalf of UP Power Corporation Ltd. When the same company operated through its sister concerns, things done by the sister concern is as good as done by the company itself. He further submitted that the authorities appropriately levied tax without taxing a part of the period mentioned in the show-cause notice. When the appellant served UP Power Corporation Ltd., it was made liable to service tax under clauses (vi) (vii) of the definition of the term 'business auxiliary service' under section 65(19) of the Finance Act, 1994. Therefore, appellate orders need no interference. 5.1 Heard both sides earlier on 27.06.11, Ld. DR needed certain instructions and also to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the payments received by the appellant M/s Sai Computer Consultancy was only intended to be taxed since facts recorded by appellate authority indicates that an amount of Rs. 1,74,94,488.22 appearing in the consolidated Balance Sheet of Sai Computer Pvt. Ltd. included receipt of Rs. 1,08,06,382.56 made by Sai Computer Consultancy. Certificate was issued by Superintending Engineer of the Corporation on 05.05.09 indicating payments made to the appellant to the extent indicated above as consideration for service provided to it. Such finding also comes out from para 4.16 of the adjudicate order. No way the adjudication had discarded certificate, issued by service recipient and no contrary evidence was gathered by Revenue. Therefore, status o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of scope of work embodied in the agreement and on interpretation of sub-clauses (vi) and of (vii) of the definition of the term 'business auxiliary service'. The payments made by UP Power Corporation vide letter dated 05.05.09 clearly shows the purpose of payments made which relates to the scope of work of the agreement. Therefore, reading of the letter of the UP Power Corporation also does not provide any basis to the case of Revenue when the scope of work warranted discharge of duties to UP Power Corporation, but not do the client of that corporation. 5.6 Mere appearance of the figures in the consolidated balance sheet of Sai Computer Pvt. Ltd. does not bring the appellant to the tax liability when from the beginning, Revenue authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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