9911796707
TMI Blog2006 (8) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... [MESCOM] were availing the services of the appellant for their accounting/ledger maintenance work. The appellants had not paid Service Tax on the amount received from M/s. MESCOM for the above said services rendered. Show Cause 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. 1,39,079/- along with interest and imposed penalty of Rs. 100/- per day under Section 76 and Rs. 1,06,041/- under Section 78 of the Finance Act, 1994. Service Tax of Rs. 33,038/- along with interest of Rs. 4,681/- a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and tallying, preparation and issue of disconnection lists to field staff and preparation of union MIS and consolidated DCB statements. The confirmation has been done on the ground that these are taxable services of accounting provided 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. 2. The appellant on the other hand contended that the services provided to M/s. MESCOM were in the nature of Business Auxiliary Service, that the services were not provided by him in his professional capacity as a practicing chartered accountant and that the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a practicing chartered accountant and a client but that of an agent and his principal. The service so provided therefore does not I it into the description of taxable service in terms of Section 65[105J[s]. 5. I 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 month's notice and termination following computerisation of ledgers, the fact that both chartered accountants and non-chartered accountants were paid similar service charges etc. goes to establish that contract is for outsourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant service is that of accounting and auditing appearing at SI No. [i] of list of taxable services of Notification No.59/1998. 9. 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. 10. 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 appellants in other 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the scope of contract that the appellant actually provided services of ledger maintenance 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 senders 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 other stages and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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