SAIL Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) HEARD both sides. The Applicant filed this application for changing Cause Title from M/s. SAIL to M/s. Centre for Engineering & Technology. The contention is that M/s. Centre for Engineering & Technology is a unit of M/s. SAIL. In these circumstances, the miscellaneous application for change of Cause Title is allowed and the application for stay is taken up for disposal. The applicant filed this application for waiver of pre -deposit of service tax of Rs. 12.68 crore and equal amount of penalty under section 78 and other penalties under sections 76, 77 of the Finance Act, 1994. The contention of the applicant is a unit of M/s. SAIL (India) are providing consulting engineering services to various clients/persons. Insofar as the service tax on the service provided to outsiders, they are paying service and in so far as the service provided in in -house, the contention is that they are all units/branches of M/s. SAIL. The contention is that they are the unit of M/s. SAIL which is evident from the registration issued to them. The contention is that ST -3 returns also show service registration in which PAN form part. They have also produced a copy of the registration certificate issued by the Central Excise Officers indicating PAN Number of M/s. SAIL. The contention is that the service provided to self cannot be charged. In support of their contention, they have placed reliance of the Tribunal's decision in the cases of M/s. Precot Mills Ltd. v. CCE : [2006] 5 STT 35 (Tri. Bang.) & Indian Oil Corpn. Ltd. v. CCE : [2009] 22 STT 15 (Kol. -CESTAT).

(2.) THE contention of the Ld. A.R. for the Department is that there is an allocation of fund between the applicant and the other units to whom the service is provided. The contention is that the applicant is issuing debit note towards the value of services.