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TMI Blog2012 (7) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... in the ordinary parlance. As the demand is time-barred because the appellants were acting on the basis of a circular issued by CBEC, invoking the powers under section 37B of Central Excise Act - If the public act relying on such circulars and still the charge of suppression is slapped on them it can be the worst travesty of justice. So there is no case for invoking suppression in this case - allowed in favour of assessee both on merits as well as on the ground that the notice is barred by time limit specified under section 73 of Finance Act, 1994. - ST/320 OF 2008 - ST/A/429 of 2012-CUS - Dated:- 5-6-2012 - MRS. ARCHANA WADHWA, MATHEW JOHN, JJ. N. Venkataraman, Ms. Suveni Banerjee and S. Nand for the Appellant. R.K. Gupta for the Respondent. ORDER Mathew John, Technical Member The Appellants are engaged in the business of providing services of management consultancy, manpower recruitment, consulting engineer etc. During the period 2001-02 to 2004-05 they also provided assistance in required for complying with the regulation of Reserve Bank of India, Foreign Investment Promotion Board etc. and also for filing application for import export code, returns u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified that such activities would not be part of Management Consultancy Service. This view was reiterated in a letter F. No. 341/21/99-TRU dated 20-08-99 issued by TRU clarifying that practitioners who help in complying with ESI and PF Regulations would not come within the meaning of Management Consultant. They argue that these clarifications reinforced their own interpretation that service tax was not payable on such activities and that is the reason why they were not paying service tax on the impugned activities. The appellant also pleads that the show cause notice issued in 20.10.06 demanding tax for the period 2001-2002 to 2004-2005 is clearly time-barred because this is a matter involving interpretation of law and they have acted bonafidely, by acting on the advice given by the Director General of Service Tax. 6. The counsel for the appellant relies on the following clarifications issued by the CBEC in this regard. ( i ) Board's Instruction letter issued from file No. 341/21/99-TRU on 20th August 1999 and ( ii ) CBEC Circular No. 1/1/01-ST dated 27th June 2001 explaining the scope of the services covered by Management Consultancy Service. 7. Out of the above two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Service as defined under Section 65(65) of the Finance Act, 1994, He submits that without the impugned Compliance Services the receiver of the service could not have carried on with their management functions and therefore service tax was payable on Compliance Services also. Ld. A.R. points out that nature of service provided by the appellants as recorded in the order-in-original as recorded in para 30.2 and 30.3 of the impugned order are the following:- "30.2 The Noticee, in their reply have stated that the services provided by them in this area relate to providing regulatory services such as obtaining registrations, and filing of returns under various statues as well as pay roll and financial accounting services, further detailed as follows: Immigration services: Relating to assistance provided to expatriates for obtaining registration with the Foreigners Regional Registration office; Litigation support: Assistant in preparation and filing of replies to notices issued by department, attending hearings and various other litigation support services; Personal tax: Assistance in preparation and filing of Indian tax returns for Indian nationals outside India as well as for e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im the above definition is extremely broad, as it encompasses any service that is directly or indirectly provided in connection with the management of any organisation in any manner. The latter portion of the definition includes certain specific services, which include any advice or consultancy or technical assistance relating to conceptualizing, devising, development, modification, rectification or up-gradation of any working system of any organisation. The Latter inclusive part of the definition does not restrict the scope of the initial part which defines the service. He relies on the definition of Management given in various Dictionaries as quoted in the impugned order and also the decision of the Apex Court in the case of Collector of Central Excise v. Parle Exports (P) Ltd. [1990] 183 ITR 624 (SC). 13. The ld. A.R. also points out that the appellants did not include the amount realised by rendering such Compliance Services in their ST-3 returns and the department had no opportunity to know that they were doing such activities amounting to Management Consultancy and not declaring it in returns filed with service tax department. Therefore the provisions regarding suppre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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