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TMI Blog2016 (4) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... cy and advice by posting only key senior personnel to assist Piem to conduct their hotel business with their own infrastructure and manpower. Further, it is noticed that IHCL is not providing any service on behalf of Piem to Piem's customers, nor are IHCL promoting the hotel business of Piem. Therefore, the services provided by IHCL to Piem cannot be termed as Business Auxiliary Service and the services provided by IHCL is squarely covered under Management or Business Consultant's Service, classifiable under Section 65(105)(r) of Finance Act, 1994, supported by the Tribunal judgments in RPG Enterprise Ltd. Vs CCE, Mumbai [2008 (4) TMI 168 - CESTAT MUMBAI] and Shervani Indus Syndicate Vs CCE, C & Service Tax, Allahabad [2009 (1) TMI 44 - CES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellant : Shri Aparna H. Adv For the Respondent : Shri A.B. Kulgod, Asst. Commr (AR) ORDER Per M V Ravindran The appeal No. ST/432/11 filed by M/s. Piem Hotels Ltd. is directed against Order-in-Original No. 14/ST/201 dated 31.3.2011 passed by the Commissioner of Central Excise Service Tax, Nashik and appeal No. ST/86184/15 filed by M/s. Indian Hotels Company Ltd. is directed against Order-in-Original No. 75 to 78/STC-I/SKS/14-15 dated 25.2.2015 passed by the Commissioner of Service Tax, Mumbai I. 2. The relevant facts that arise for consideration are that M/s. Indian Hotels Company Ltd. ( IHCL for short) are providing hospitality Services and are having their chain of hotels and resorts all over the world. IHCL p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssistance which are directly in connection with management of the respective hotels and, hence, squarely covered under Management or Business Consultant Service' under Section 65(105)(r) of Finance Act, 1994, under which they have paid service tax also. It was further submitted that as per Section 65(65) Management Consultant means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organization in any manner and includes any person who render any advice, consultancy or technical assistance, which shows that the definition of Management Consultant' is very wide to cover management of any organization in any manner, in support of which the learned Counsel place ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 011 confirming the specified demand and imposing penalty. It is her submission that the clauses of the agreements convey the role of the IHCL, which includes powers and management control to aid the respective hotels in fulfilling their goal of efficient working of the hotels and the said intention can be gathered from the various clauses of the agreement. Further, it was submitted that the substance of the Agreement has to be taken into account to understand the true relation for which the Counsel has relied on the Hon'ble Supreme Court judgment in the case of The Bhopal Sugar Industries [(1977) 3 SCC 147] and emphasized that once the substance of agreement is considered, the purpose and object of the arrangement is very clear, i.e. it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f classification and/or demand of service tax under Business Auxiliary Service' and adjusting the service tax already paid under Management Consultancy Service towards the demand under Business Auxiliary Services is not permissible, as the Revenue has not challenged the assessment till date by filing of appeal. It was her submission that in a similar case of Newlight Hotels Resorts Ltd; the hotel was availing credit of service tax paid on similar services provided by IHCL and were issued with Show Cause Notice for denial of credit, which was confirmed by the Commissioner and in appeal against the said Order, the Tribunal, vide Final Order No. A/11848/2014 dated 28.10.2014, invoking the ratio of Hon'ble Madras High Court judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e role of Appellants was not just advisory but more of operational even at the senior management functions; that the sole intention behind classifying the services under Management or Business Consultancy Service' is to enable their own arm to avail 100% credit of cenvat in terms of Rule 6(5) of CCR, 2004; 6. We have considered the rival submissions and perused the records and find that the nature of service provided by IHCL is of the kind of advice, consultancy and assistance which are directly in connection with management of the respective hotels. It is clear from the submissions and the records that IHCL is not managing or conducting the hotel business of Piem on their behalf, but are only providing the management consultancy an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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