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TMI Blog2014 (9) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... on. The appellant is also registered as a merchant banker under the SEBI regulations. Therefore, the confirmation of demand under the category of ‘Management Consultancy Service’ is not sustainable under law. Since the transaction was undertaken in January, 2000 and the merchant banking activities rendered by ‘body corporate’ came under the tax net w.e.f. August, 2002, prior to that period no service tax would be leviable on merchant banking activity rendered by a ‘body corporate’ - Decided in favour of assessee. - ST/266/2012 - Final Order No. A/492/2013-WZB/C-I(CSTB) - Dated:- 21-2-2013 - Shri P.R. Chandrasekharan, Member (T) and Anil Choudhary, Member (J) Shri Vinod Awtani, Chartered Accountant, for the Appellant. Ms. D.M. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anuary, 2000. As per the definition of Management Consultancy Service under Clause (65) of Section 65 of the Finance Act, 1994 means : management consultant means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organisation in any manner and includes any person who renders any advice, consultancy or technical assistance, in relating to conceptualizing, devising, development, modification, rectification or upgradation of any working system of any organisation. 3.1 By rendering the service of private placement of equity shares, they have not undertaken any of the activities which come within the scope of management consultant as defined in the Finance Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for debt/equity issue management and acting as advisor, consultant, co-manager, underwriter and portfolio manager. In addition, merchant banking services also include advisory services on corporate restructuring, debt or equity restructuring, loan restructuring, etc. The fee charged by the merchant banker for rendering these services will be the taxable value in respect of this service. 3.2 From the above clarification given by the Ministry, it can be seen that the activity undertaken by them would come under the category of Merchant Banking . 4. The learned Dy. Commissioner (AR) appearing for the Revenue strongly refutes the contentions of the learned consultant and submits that the impugned order is based on Board s Circular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in connection with the management of an organisation as merger and acquisition themselves are important dimension of modern management. 4.1 Therefore, he submits that the activity undertaken by the appellant would merit classification under Management Consultancy services . 5. The learned consultant, in his rejoinder submits that this clarification has been issued by the Board in June, 2001 and from the beginning of the paragraph it was evident that there were a number of doubts regarding scope of the services of management consultancy and therefore, even if it is held that the activity undertaken by them would come under management consultancy services , the demand would be hit by time bar as no mala fide can be alleged against th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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