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TMI Blog2014 (12) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... ss entity only will be covered by the definition and not executory type of responsibilities of management got done through another agency. For example collection of bad debts is a responsibility of a Management. If somebody is engaged for collecting bad debts the person engaged cannot be considered to be providing Management or Business Consultancy Services. Though the definition at Section 65(65) includes any service in connection with management of any organization, the scope of the definition gets restricted to services in relation to consultancy as is evident from the name given to the service and commercial understanding of the expression ‘Management or Business Consultancy’. Impugned orders are unsustainable and liable to set aside and we do so - Following decision of Sridhar & Santhanam [2008 (12) TMI 104 - CESTAT CHENNAI] - Decided in favour of assessee. Export of services - Held that:- Appellant has been taking a consistent plea before the lower authorities that the services rendered by them are in respect of the clients situated abroad are in the form of export of services. The said plea of the appellant was supported by documentary evidence of receipt of the amounts f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtered Consultant in connection with the management of any organisation in any manner shall be deemed to be the taxable service under the category of Management Consultant. As per Section 65(105)( r) of the Act, the taxable service means any service provided to a client, by a management consultancy in connection with the management of any organisation, in any manner. A statement of Shri Yogesh Ghanshyam Shah, Partner of M/s C C Chokshi Co., Ahmedabad who is a partner of appellant was recorded on 17.10.05, 20.10.05 01.09.06 wherein he inter-alia admitted that his company has provided services like audit, tax audit, matter relating to direct indirect taxes, management consultancy etc., that there was a contract service agreement between the appellant and M/s C C Chokshi Co and accordingly the work was carried out by the appellant though M/s C C Chokshi s staff; that the transactions showing the amount of various fees, reflected in the balance sheet are only after realisation of the same from the clients/customers, that they have not obtained service tax registration under the category of Management Consultancy Service upto 31.3.2005. A dated 20.10.2006 was issued upon th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv) Suvikram Plastics (P) Ltd v. Bangalore - 2008(225)ELT.282 4.1 It is his submission that the appellant is a practicing Chartered Accountant firm providing services out of India and receiving the payment in convertible foreign exchange which are not repatriated out of India. It is his submission that during the disputed period, i.e., April 2001-March 2005 the authorities have demanded service tax on certain transactions alleging that the consideration for the said transactions is not received in convertible foreign-exchange and hence not eligible for exemption from payment of service tax. He would then draw our attention to various notifications and circulars and submit that after Notification 6/1999/ST there is no notification in force for export of service and exemption payment of service tax but appellant had categorically taken a stand that the amounts were received for the transaction of export services and there was no need for the appellant to submit Foreign Inward Remittance Certificate to establish that consideration is received in convertible foreign exchange. Since the services were provided outside India, the transactions would be considered as export of service. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultancy services. It is his submission that the action taken by the appellants client based upon the advice given or the reports submitted would definitely fall under the category of management consultancy services. It is his submission that the show cause notice is not hit by limitations as the appellants accounts were audited and it was found that there is escapement of tax. 6. We have considered the submissions made at length by both sides and perused the records. 7. The issue to be decided in this case is whether the appellant is covered under the category of Management Consultancy Services for the services provided by him in relation to the following assignments: a) Information Memorandum Valuation b) Valuation of Business c) Review of Housing Loan d) Partner search assignment, and e) Syndication of Working capital 8. Yet another issue which arises for our consideration is whether during the relevant period the amounts received by the appellant in consideration for export of services would be exempted from service tax liability as having received in convertible foreign exchange. 9. On perusal of the records and the written submissions made at the ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. This view has been taken by the Co-ordinate Bench in the case of Sridhar Santhanam (Supra) wherein Tribunal held as under: I have considered the case records and the rival submissions. The dispute to be resolved in this case relates to the Notification No. 15/2002-Service Tax dated 1st August, 2002. The dispute is confined to the date of effect of the Explanation introduced by this notification. The notification does not contain anything to indicate that it operates from a past date. The language of the notification does not say that the notification is intended to remove doubts and clarifies a position valid since the issuance of the Notification No. 59/98-S.T. Considering the language of the notification, in the absence of a specific stipulation as regards its date of effect, the amendment has to be held to be effective only from the date of issue of this notification. The text of the Notification No. 59/98-S.T. does not support denying such exemption as availed by the appellant. Perhaps the legislature did not envisage such a benefit under the said notification and hence the disputed notification was issued. But a legislative intent which is not obvious ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices. Though the definition at Section 65(65) includes any service in connection with management of any organization, the scope of the definition gets restricted to services in relation to consultancy as is evident from the name given to the service and commercial understanding of the expression Management or Business Consultancy . 12.2 In yet another case i.e., Ernst Young Pvt Ltd (supra)the Tribunal held a under: 14. We have considered arguments on both the sides. We find that the decisions of the Tribunal in the case of Futura Polyesters Ltd. (supra) quoted above is clearly to the effect that most of the impugned activities could not fall under the definition of Management Consultancy Service. We are of the view that though compliance with laws is part of the responsibilities of management such responsibility per se cannot bring it into the ambit of the words in connection with the management of any organisation used in Section 65(105)(r) and Section 65(65) of Finance Act, 1994 to tax such services. In this matter we see merit in the clarification given by CBEC in para 9 of its circular dated 27-6-2001. The decision of the Apex Court in the case of Parl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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