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TMI Blog2004 (8) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... s in any case not payable on reimbursement/out of pocket expenses charged on actuals as per the clarifications Trade Notices of the department. When an existing Tariff definition remains the same, then the introduction of new Tariff entry would imply that the coverage under the new Tariff for purpose of Tax is an area not covered by the earlier entry. The new entry is extension of the scope of coverage if Service Tax and not carving out of a new entry, from the erstwhile entry of Management Consultancy Service . Therefore, it has to be held, that in the facts of this case, the levy of Service Tax on Staff Costs defined by BWIL, under the heading Management Consultancy Service cannot be upheld. Levy on such costs could be as on Business Auxi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant for BWIL are allocated & reimbursed as per an agreement. 2. Pursuant to verification of notes of accounts (Section 18(12)(b) of the Balance Sheet for 1998 & 1999) it was found, by the officers, that the appellants has recovered certain amounts towards 'Staff Costs' & other expenses & shared services from BWIL. This was considered to, after due enquiries, "Management Consulting Services" provided by the appellants to BWIL as per definition in section 65(37) of Chapter V of Finance Act, 1994 (as amended) for Management Consultant, & definition of Taxable Service in section 65(72) of Chapter V of Finance Act, 1994 & interpretation of the term 'Service Provider'. The appellants were charged & held liable to a Service Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice 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. Parasmal Bam v. CCE 2002 (146) ELT 717 (Trib.- Delhi). (b) Examining the costs deferred by BWIL it is found that 'other expenses' are on account of following factors for the period 1-1-1998 to 31-12-1998 (as per letter dated 25-2-1999 of the CA) Other ExpensesRs. in lakhs Publicity -1,64.29 Power & fuel -0.20 Rent -4.36 Miscellaneous Expenses -167.48 Total -5.88.47. None of the heading, as per the above certifications, would cover the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 organization;" When read with the subsequent coverage of service tax levy on "business auxiliary service" which was introduced and defined as in (July 2003)- "19 'business auxiliary service' means any service in relation to,- (i )promotion or marketing or sale of goods produced or provided by or belonging to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could be as on Business Auxiliary Service, which was not a Taxable Service prior to 2003 and appellants is not a service provider as Management Consultant. (d) Once that is found and 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 a 'Management Consultant'. (e) When there is no levy of Service Tax on the appellants, for the services provided, there was no requirement of registration and filing of returns and 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. The orders are therefore required to be set aside. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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