2013 (7) TMI 910 - AT - Service Tax

Summary

Issues:
The issues involved in the judgment are the classification of services rendered by the appellant under 'Management Consultancy Services' for the purpose of Service Tax.

Facts:
The appellant entered into a joint venture agreement with a company and handled day-to-day work for which reimbursement was received. The department issued a show-cause notice for Service Tax, which was dropped by the Assistant Commissioner but later reviewed by the Commissioner who classified the services as 'Management Consultancy Services' leading to a demand for Service Tax.

Appellant's Submissions:
The appellant argued that the services provided were executory functions and not advisory or consultancy functions, citing relevant Tribunal decisions and emphasizing that the services did not fall under 'Management Consultancy Services'.

Revenue's Contention:
The Revenue contended that the services provided by the appellant fell under 'Management Consultancy Services' based on the joint venture agreement and statements confirming the management of the other company by the appellant.

Judgment:
The Tribunal considered the terms of the joint venture agreement and the actual functions performed by the appellant, concluding that the services were executory in nature and did not amount to 'Management Consultancy Services'. Relying on previous Tribunal decisions and the dismissal of an appeal by the High Court, the Tribunal set aside the Commissioner's order, allowing the appeal of the appellant.