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TMI Blog2024 (8) TMI 598X X X X Extracts X X X X X X X X Extracts X X X X ..... . LTD. [ 2006 (8) TMI 187 - SUPREME COURT] , wherein it has been held that the issue is no more res-integra that a Company incorporated under the Companies Act, 1956 is a single person/entity in the eyes of law and cannot re-constitute itself to several legal entities. Divisions/Branches cannot have identity different and distinct from the Company. Therefore, the findings of this Tribunal demanding service tax was set aside. Therefore, following the decision of the Hon ble High Court of Jharkhand, it is held that TGS TSL are the same identity and it is well settled that the credit of input is to be utilized for payment of service tax towards output services. There is or can be no dispute with this legal position and this is what the representatives of TGS and TSL, agreed with. Further, it is also settled legal position that under the Central Excise law there is no requirement of one-to-one correlation between the credits availed in respect of the input and input service and utilization thereof in payment of central excise duty or service tax in respect of dutiable goods manufactured and cleared and/or output service rendered. Hence, TGS has rightly availed the subject cenvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es etc. of TGS is not reflected in a separate profit and loss account and balance sheet but are part of the consolidated figure of Annual Accounts of TSL. TGS does not also file any separate return under the Income Tax Act, 1961. 2.3 TSL being a limited company is required to prepare its Annual Accounts strictly in accordance with Schedule VI to the Companies Act, 1956. The said Annual Audited Accounts, which are presented to the shareholders, as also to the Government authorities, including inter alia, Income Tax, Sales Tax and Excise authorities, reflect the consolidated figures of the affairs of the company, as a whole, in respect of all its divisions, including TGS. 2.4 TGS clears the goods from its factory in CKD/SKD form and paid excise duty accordingly. TGS engages sub-contractors to execute the job of erection installation of the machineries and equipment supplied to its customers and to the Steel Works, Such sub-contractors perform the job in the premises of customers and the Steel Works. The subcontractors charge and TGS reimburses them the service tax paid on such services. During the material period, TGS issued separate invoices for the services rendered and charged ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and considered the submissions. 6. We find that in the appellant s own case, this Tribunal on identical case, has observed as under : 5. We have considered the rival contentions, have gone through the documents placed on records and have also gone through various decisions relied upon by the Ld. Senior Advocate. From the Perusal of the documents and the explanations filed by the appellant, we note that but for pleading that there was no service recipient rather service is for self, no documentary evidence is furnished for the satisfaction of either the Ld. Commissioner/Adjudicating Authority or before us. We also find that the Adjudicating Authority has given a finding on the contentions of the appellant; that the services rendered by the appellant was for consideration and that in case of orders for executing service, the appellant had sub-contracted after making payment for which, the appellant had also taken credit for the Service Tax amount charged. There is also a finding by Ld. Commissioner that the appellant did indeed allot vendor code and ledger to Tata Steel Ltd. by treating the other as its customers on which there is no refutal/rebuttal by the appellant and it is also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court are reproduced below : It is well settled that credit of input service is to be utilized for payment of service tax towards, inter alia, output service. There is, or can be no dispute with this legal position and this is what the representatives of TOS and TSL, agreed with, during the course of personal hearing. Further, it is also settled legal position that under the Central Excise law there is no requirement of oneto- one correlation between the credits availed in respect of the input and input service and utilization thereof in payment of central excise duty or service tax in respect of dutiable goods manufactured and cleared and/or output service rendered. Hence, TGS had rightly availed the subject CENVAT credits of service tax paid, without there being any concomitant obligation to make payment of service tax on the services rendered to another unit of TSL. Contrary finding of the Tribunal is also erroneous and untenable. 17. At the cost of repetition, we once again reiterate that separate registration of each factory/premises of manufacturer/service provider does not and cannot render each one of such factory/premises of the manufacturer/service provider a separat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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