9911796707
TMI Blog2007 (2) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... pointed the appellant as a non-exclusive agent to sell products manufactured by or on behalf of the other party. In terms of the agreement, the appellant was to provide comprehensive service in regard to market development, marketing sales and other connected services in regard to the products covered by the agreement. 2. In July 2003, "business auxiliary service" was brought under service tax. On 29/31-7-2003 the appellant wrote a letter to the Deputy Commissioner of Central Excise, Gurgaon stating that it is advised that it is not liable to any service tax in relation to the agreement. The letter sought confirmation that the appellant is not liable to pay service tax. The appellant wrote another letter on August 25, 2003 intimating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receipt of fee or professional charges for the same & being compensated in actuals will not render them "Management consultant" would ipso facto is not exempt them from the visit of Service Tax, is not accepted following Kerala Colour Labs Association [2003 (156) E.L.T. 17] relied upon by the Id. DR. It is the rendering of service that is taxed & not belonging to a profession, trade or calling. The taxable event would arise if the 'Service is rendered'. The considerations to defer the "Service rendered' import full or at profit is not relevant as taxable event will determine the Tax & not the compensation thereof, (see also Parasmal Bam [2002 (146) E.L.T. 717]. (b) Examining the costs deferred by BWIL it is found that 'other expenses' ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... keting exclusively for BWIL, as ably presented by the ld. DR, would be conducting Executory Functions & not Advisory Functions, The definition of Management Consultant reads as under - "(65) "management consultant" means any person who is engaged in providing any service, either directly or indirectly in connection with the management of any organisation in any manner and includes any person who renders any advise, consultancy or technical assistance, relating to conceptualising, devising, development, modification, rectification or upgradation of any working system of any organisation". When read with the subsequent coverage of Service Tax levy on "business auxiliary service" which was introduced & defined as in (July 2003) "(19) "busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Consultancy Service' cannot be upheld. Levy on such costs could be as on business auxiliary service, which was not a Taxable Service prior to 2003 & appellant is not a service provider as Management Consultant. (d) Once that is found, & the appellant cannot be classified as a service provider under 'Management Consultant' levy of Service Tax cannot visit prior to 2003 or after 2003 under and a 'Management Consultant'. (e) When there is no levy of Service tax on the appellant, for the Service provided, there was no requirement of registration & filing of returns &/or delay payment of any tax during the period under dispute. The penalties imposed are to be set aside along with the demand of tax as made and interest consequent thereon. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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