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TMI Blog2013 (9) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... the liability to pay amount equal to 8% of the value of the exempted services – Decided in favor of assesse. - ST/444/12 - Final Order No. A/499/2013-WZB/C-I(CSTB) - Dated:- 27-2-2013 - P R Chandrasekharan And Anil Choudhary, JJ. For the Appellant : Shri Bharat Raichandani, Adv. For the Respondent : Shri P N Das, Commissioner (AR) PER : P R Chandrasekharan The appeal and stay application are directed against Order-in-Original No.39/ST-II /WLH/2012 dated 26.5.12 passed by the Commissioner of Service Tax, Mumbai-II. 2. The appellant M/s Federal Express Corporation, Powai, Mumbai are registered with the Department in respect of the taxable services such as Transport of the goods by air/road, Courier agency services, Management consultancy services and Online information and Database access and retrieval services. During the course of audit of the records undertaken by the department, it was noticed that the appellant had classified the services, namely, information and tracking of delivery schedule, managing distribution logistics, received from outside India, under the category of Management Consultancy Services and the appellant had availed CENVAT Credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a service agreement with M/s Federal Express European Services Incorporation on 1.6.2000. As per the said agreement M/s Federal Express European Services Incorporation provided services stipulated in Exhibits-II to XV to the said Agreement. The services provided included:- (a) Sales Planning, Training and Communication (b) Marketing and Advertising (c) Financial and Management Accounting Services (d) Legal services (e) Information Telecom services (f) Human Resources and Training (g) Procurement (h) Global trade services (i) Customer service (j) Planning Engineering (k) Revenue Support (l) Security (m) GOCC (n) Sub Regional Services These services were categorized as Headquarter Management Services' broadly. For the services received by the branch office in India, which is the appellant, the consideration paid by the parent company was debited from the accounts of the branch office. Thus, the services received by the appellant is correctly classifiable under Management Consultancy Services' as defined under Section 65(65) of the Finance Act, 1994 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es received by the appellant would be covered under the category of Management Consultancy Services. Similarly in the case of Business Support Services, the CBE C had clarified vide the Circular No. 334/4/2006-TRU dated 28.2.2006 as follows:- BUSINESS SUPPORT SERVICES: Business entities outsource a number of services for use in business or commerce. These services include transaction processing, routine administration or accountancy, customer relationship management and tele-marketing. There are also business entities which provide infrastructural support such as providing instant offices along with secretarial assistance known as "Business Centre Services". It is proposed to tax all such outsourced services. If these services are provided on behalf of a person, they are already taxed under Business Auxiliary Service. Definition of support services of business or commerce gives indicative list of outsourced services. From this clarification issued by the Board it is absolutely clear that the services received by the appellant do not come under the category of Business Support Services. (iii) Further, this Tribunal in the case of RPG Enterprises Ltd. Vs. Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation regarding the Management Consultancy Services received by them and the credit availed by them on account of the same. We have also perused the agreement entered into by the appellant with the foreign service provider. As per the said agreement, the services received by the appellant relate to various aspects of the management activity of the appellant as described in detail in para 3 (i) above. They related to advice and consultancy in the form of sales planning, marketing management, human resource management, financial planning and analysis, logistic management, tax consultancy and so on. Even in the invoices raised by the service provider, the services are described as Headquarter Management Service'. From the copy of the agreement and the bills raised for the same, it is clear that the services received by the appellant were more appropriately classifiable under the category of Management Consultancy Services. Section 65(65) defines Management Consultancy Services means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organization or business in any manner and includes any person who renders any a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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