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TMI Blog2018 (11) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... Raghavan, Adv. for the Appellant (s) Shri K. Chowdhari, Suptd. (A. R.) for the Revenue ORDER Briefly stated the facts of the case are that the appellant is a unit of SAIL, engaged in; in-house design, engineering activities for all the units of SAIL i.e. M/s. Bhilai Steel Plant, Durgapur Steel Plant, Rourkela Steel Plant, Bokaro Steel Plant, Iisco Steel Plant etc. Show 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 thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board Meeting on 28/01/1982. The Ld. Advocate argued that the impugned order cannot be sustained as the appellant is a unit of SAIL and cannot be called an associated enterprise for other units and plants of SAIL. Since, the appellant is not receiving any consideration for any activity to the other units of SAIL, the debit notes raised between the appellant and other units of SAIL for allocation 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 thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive Engineering Vs. CCE ST, Jaipur, as reported in 2018-VIL-641-CESTAT-DEL-ST has held that service provided to oneself is not taxable. The relevant paragraphs of the Tribunal s decision are reproduced below:- 6. While rebutting these arguments, ld. DR has impressed upon that separate registration under service tax make the entities as two different concern as that of an associated concern. Thus there is no wrong 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are units/office of one and the same company i.e. BSNL. In view thereof we are of the opinion that the adjudicating officer has not appreciated the fact that monthly advice debit notes from one unit EE-BSNL, Jaipur are nothing but transfer of expenses through book entry to another unit of the same Circle and for taxability under the service tax law, it is mandatory that the services has to be provided to a different unit and the receiver 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce no service tax is payable Hon ble Apex Court in the case of All India Federation of Tax practitiers case 2007(7) STR 625 SC has held that service tax is imposed every time service is rendered to a customer or client, as per Section 65 (105) (zzzx) of the Finance Act, 1994. Thus taxable event is held to be each activity of service provider to a service recipient. This makes it clear that service provided to one own self is not the taxable event. Once this is the situation Section 67 of the Act has no applicability nor will be relevant the explanation in sub section 4 thereof. We therefore are of the opinion that adjudicating authority below has wrongly relied upon the concept of book adjustment which is relevant only when the event is tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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