9911796707
TMI Blog2006 (1) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) Purchase of new materials and consumables at economical prices by identifying new suppliers. (3) Finding new markets for the assessee's products. (4) Marketing strategies and advertisement programmes. (5) Efficient way of production by upgrading technology and optimizing production techniques. (6) Human Resource Development areas and helping in hiring and training of new people. 2.Revenue issued show cause notice dated 24-7-2003 for demand of Service Tax under the category of Management Consultant with effect from 16-10-1998. The Service Tax at the rate of 5% for the period from October 1998 to May 2002 worked out to Rs 4.62 lakhs for the above mentioned services provided by the appellant to M/s. Karnataka Electronic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manding the service tax by the lower authority. (3) The services rendered by the appellants to M/s. Karnataka Electronics would only fall within the ambit of banking and other financial services/business auxiliary services. Hence, during the relevant period, these services would not come under the category of management consultancy services. (4) Of the six services enumerated in the agreement mentioned supra the first service reads as follows : "Finance, including wherever necessary, assisting in discussions, and negotiations with the financial institutions". The learned advocate pointed out that the above service would definitely fit into the definition of banking and other financial services, as provided in the Finance Act, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary services Section 65(19)(i) which reads as "promotion or marketing or sale of goods produced or provided by or belonging to the client. Therefore, this activity also falls under "business auxiliary services". (8) As regards Sl. No. 5 in the agreement it was contended that the appellants had already paid tax under the category of scientific and technical consultancy. It was stated that on this issue, there is no doubt. (9) As regards Sl. No. 6, in the contract it reads as "human resource development areas and helping in hiring and training of people". Our attention in this connection was invited to CESTAT Chennai Bench Final Order No 1168/2005 dated 29-8-2005 wherein, the Tribunal has classified the above service in the category o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d definition of management consultancy services, the same could fall within its ambit. Hence, he requested the Bench to confirm the demand. 6.We have considered the submissions made by the appellant and the learned SDR. The appellants have clearly demonstrated that the services rendered to M/s. Karnataka Electric Power would only fall within the ambit of Business Auxiliary Services Scientific and Manpower Recruitment Agency Technical Consultancy Services. However, during the relevant period, except scientific and technical consultancy services, the other services rendered by the appellant would not be subjected to service tax. They had already paid duty on the scientific and technical consultancy services. Since business auxiliary service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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