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In default actions are not executed on unmanaged objects. If you would like to change this behaviour go to Settings -> polling settings and check "ALLOW ALERT ACTIONS FOR UNMANAGED OBJECTS".
Because Create servicenow incident is action it wasn't executed.
LadaVarga, I truly owe you one.
This is what happens when we think we know SolarWinds Orion , I have been so used to the tool and functionality that I have stopped looking for things which are bare minimum, I am loosing on my basics - thanks a ton for guiding me on this, that was the exact issue and you nailed it.