2002 (8) TMI 2 - AT - Service Tax

Service Tax Management Consultant (1) Qualification (2) Consultancy bill (3) Service tax leviable

Summary

Issues: Rejection of refund claim of service tax paid by appellant engaged as Management Consultant

In the present case, the appellant's refund claim of service tax paid was rejected on the grounds that the appellant, although lacking specific academic qualifications in management, was engaged as a Management Consultant based on his experience as a Managing Director. The appellant argued that the engagement was primarily to ensure the confidentiality of information and not for consultancy services. However, the Revenue authorities pointed to a Consultancy Bill showing payment made to the appellant for providing consultancy services related to the company's affairs. The Tribunal examined the definition of Management Consultant and highlighted that academic qualifications are not mandatory, as years of management experience can provide valuable insights. The assignment agreement also specified that the appellant was to advise the company on various matters, supporting the view that the payment made was for professional services. Consequently, the Tribunal found no merit in the appeal and dismissed the same.

This judgment clarifies the criteria for being considered a Management Consultant and emphasizes that academic qualifications are not a prerequisite. The decision underscores the importance of experience in the field of management, which can often provide unique perspectives that academic knowledge may lack. The Tribunal's analysis of the assignment agreement and the nature of services provided further supported the conclusion that the appellant was indeed engaged as a Management Consultant and the payment received was for professional services rendered.