9911796707
TMI Blog2006 (8) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... se Notice was issued to demand the Service Tax along with interest and also proposed to impose penalty. The adjudicating authority, vide impugned order held that the service provided by the appellants falls under the category of "Practicing Chartered Accountant" and confirmed and demanded Service Tax of Rs. 1,65,398/- along with interest and imposed penalty of Its. 100/- per day under Section 76 and Rs. 1,65,398/- under Section 78 of the Finance Act, 1994. Aggrieved by the impugned order, the appellant have filed this appeal infer aim on the following grounds. 3. The activities rendered by them in respect of MESCOM contract is not a service rendered in the professional capacity as a Chartered Accountant and are only of general nature which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by a practicing chartered accountant in his professional capacity and Notification No. 59/98-ST. dated 16-10-1998 includes such a service of accounting for attracting levy of Service Tax on professional services of a practicing chartered accountant. 7. The appellant on the other hand contended that the services provided to M/s. MESCOM were not provided by him in his professional capacity as a practicing chartered accountant and that the service actually done was limited to maintaining ledger accounts of billing related activity which did not amount to professional accounting service of a practicing chartered accountant. The appellant also claimed alternative classification under Business Support Services coming into existence only in 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to make a security deposit. It is therefore clear that, the relationship between the appellant and M/s. MESCOM is not that of a practicing chartered accountant and a client but that of an agent and his principal. The service so provided therefore does not fit into the description of taxable service in terms of Section 65[105] [s]. 10. 1 further observe that the work allotted to appellant was capable of being allotted to persons other than a chartered accountant which implies that the work is not one requiring hiring of a chartered accountant for his professional skills of accounting. Provisions relating to termination of contract at one months notice and termination following computerization of ledgers, the fact that both chartered acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of accounting and auditing appearing at SI. No. [i] of list of taxable services of Notification No. 59/1998. 14. The appellant has contested with some force that services rendered by him was that of book keeping/ledger maintenance for area specified in the contract and not of professional accounting by a chartered accountant which has a different scope and meaning. 15. I find from the written submission and extracts from a text book on Accountancy by B.S. Raman, furnished at the time of personal hearing, by other appellants in cases of appeal involving similar facts and issues, that book keeping/ledger maintenance though an essential part of accounting process, cannot by themselves amount to a professional service of accounting offered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract that the appellant actually provided services of ledger maintenance, by way of deputing manpower, as per plans and specification already determined for transactions limited to the area of billing, recoveries, etc. and generated relevant MIS and DCB statement. These statements and reports do not amount to a balance sheet for M/s. MESCOM. I therefore come to a conclusion that services provided by the appellant to M/s. MESCOM do not amount to a professional service of accounting provided by a practicing chartered account and accordingly did not attract Service Tax liability in terms of Notification No. 59/1998-ST. I also hold that ledger maintenance is only an ingredient and process of professional accounting, which involves several ..... X X X X Extracts X X X X X X X X Extracts X X X X
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