2015 (4) TMI 217 - AT - Service Tax

Exemption under Notification No.59/98-S.T., dated 16.10.1998 - Management Consultancy, Man-power Recruitment Agency Service - whether the appellants, the Practicing Chartered Accountants are eligible for benefit of the said notification from rendering service covered under the Management Consultancy Services - held that - A benefit available on a plain reading of the notification cannot be denied retrospectively by issuing a notification. The Explanation introduced under Notification No.15/2002-S.T., dated 01.08.2002, therefore, takes effect only from the date of its issue. Therefore, Man-power Recruitment Agent' it rendered during the period 16.10.1998 to 31.07.2002 confirmed in the impugned order cannot be sustained. - decision in the of M/s Deloitte Haskins & Sells Versus The Commissioner, C&ST, Ahmedabad 2014 (12) TMI 43 - CESTAT AHMEDABAD followed - Decided in favour of assessee.

Summary

Issues:
- Interpretation of exemption notification for Practicing Chartered Accountants providing Management Consultancy Services

Analysis:
The case involved a dispute regarding the applicability of service tax on Practicing Chartered Accountants providing Management Consultancy Services. The appellants claimed exemption from service tax under Notification No.59/98-S.T. dated 16.10.1998. The Revenue contended that the exemption did not extend to Management Consultancy Services. The Tribunal analyzed the notification and relevant provisions to determine the eligibility for exemption. It was established that the appellants were Practicing Chartered Accountants and were providing taxable services under Management Consultancy, Man-power Recruitment Agency Service. The demand for service tax was raised before 01.08.2002, under the category of Management Consultancy Service. The Tribunal noted that the exemption notification did not cover Management Consultancy Service, and the appellants were liable for service tax on such services before the mentioned date.

In a significant reference to a similar case, the Tribunal cited the judgment in the case of M/s. Deloitte Haskins and Sells, where the issue revolved around the eligibility of Practicing Chartered Accountants for exemption under the notification for Management Consultancy Services. The Tribunal highlighted that services provided by the appellants, not falling under the specified categories in the notification, were not taxable until 01.08.2002. The Tribunal emphasized that the exemption under the notification was not applicable to Management Consultancy Services and upheld the decision in favor of the appellant.

Based on the detailed analysis and precedent set by the judgment in the case of M/s. Deloitte Haskins and Sells, the Tribunal set aside the impugned orders and allowed both appeals with any consequential relief. The decision reaffirmed the interpretation of the exemption notification and clarified the scope of taxable services for Practicing Chartered Accountants, providing a clear legal stance on the issue at hand.