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TMI Blog2009 (1) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... eal arises out of the remand order of the Tribunal vide Final Order No.ST/63/06-ST dated 25.1.2006. The relevant portion of the said order is reproduced below: "5. We find that on one hand, the Commissioner (Appeals) has given finding without discussing the terms of agreement that the appellants are not 'Consulting Engineer' and on the other hand, he has also given finding that the appellants are 'Management Consultant', but in his final order, he has upheld the order of the Assistant Commissioner. Thus, the order of the Commissioner (Appeals) is contradictory to his findings and the real controversy which was before him in the appeal filed by the appellants was not examined in terms of the agreement. We, therefore, set aside the order of the Commissioner (Appeals) and remand the case to him for a fresh decision after taking into consideration the grounds taken by the appellants and the agreement entered into by them with M/s Gillete and other relevant records and decisions of the higher forum for coming to the correct conclusion in accordance with law. Opportunity of hearing also be afforded to the appellants before deciding the appeal in accordance with law." 3. The relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) STR 110 (Tri-Del.) and filed case law compilation. 5. Learned DR reiterates the findings of the Commissioner (Appeals). He submits that it is revealed from the Agreement that the appellant was rendering specialised technical advisory service to M/s Gillette. He also submits that "Management Consultant" means any person who is engaged for providing any service in connection with the management in organization in any manner. He emphasised that the words "management in any manner" include technical service. In the present case, the appellant company provided the services to Gillete in technical advisory services, which includes within the definition of the Management Consultant. He relied upon the Board's Circular No.1/1/2001-ST (Section 37-B), dated 27.6.2001 F.No.177/ 2/2001-CX.4. He also relied upon the decision of the Tribunal in the case of Parasmal Bam vs. C.C.E., Indore - 2006 (3) STR 73 (Tri-Del.). 6. After hearing both sides and on perusal of records, we reproduce the relevant portion of the agreement, for the purpose of proper appreciation of the case, as under:- "WHEREAS (a) SISL is, inter alia, engaged directly in the business of manufacture, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n GDOL and SISL. 4. CONSIDERATION 4.4 In consideration of SISL providing Technical Advisor Services to GDOL, GDOL shall pay SISL Technical Advisory Services fees, subject to taxes applicable of Rs.6,00,00,00/-(rupees six crores only) each on or before the 30th June 2001 and 31st December 2001 respectively." xxx xxx xxx SCHEDULE "Ongoing Technical services (a) to assist GDOL to maintain all the equipment and the manufacturing facilities generally in good operating condition and advise on any reconditioning , replacement of other special steps required. (b) to provide guidance and suggestions to GDOL so that manufacturing facilities remain at the same SISL standard by means of process and quality control improvements. (c) to carry out audit and review visits to assess the adequacy of all aspects of GDOL's manufacturing operations. (d) provide to GDOL necessary materials and production specifications for manufacture of the New Products and advise on procedures for effective evaluation of incoming manufacturing materials and supplies." 7. On perusal of the agreement of the parties, we fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... organization'. In the Law Lexicon Dictionary, it is termed as 'government control, Superintendence , physical or manual handling or guidance; act of managing by direction or regulation or administration as management of family or of house-hold or servant or of great enterprises or of great affairs.' The word 'consultant' in the New International Webstor's Comprehensive Dictionary of English Language, means, 'a person who seeks professional advice or takes part in consultation; the most senior group of doctors in a given speciality in a hospital; a person who seeks advice or information'. 11. In earlier days, the term 'Management' was understood by the Board of Directors or by Apex Body or the Executive Body of the Organization, who regulates, supervises, directs and controls the affairs of the organisation. Now, the term Management' has to be looked, in the context of rapidly growing profession of management consultancy. The management consultancy is available in various areas, such as, planning, technical advice, co-ordination, staffing, controlling labourers, etc. It is seen from the definition of the 'Management Consultancy' in the Finance Act, 1994, it has widen the scop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion are an important aspect of management of any organisation today; and (iv) advisory services, including financial advisory services, for merger and acquisition clearly fall with in the realm of management consulting. 12. In the present case, on perusal of the agreement, we find that Ongoing Technical Service as indicated in the Schedule to the Agreement is in the nature of assistance, advising guidance, in various manner. Therefore, in our view, the appellant was rendering management consultancy in the organisation of M/s Gillete, in the manner of technical advisory service and such service is covered under the category of Management Consultant as defined in Section 65(65) of the Act. Therefore, the levy of tax is justified. 13. The case laws relied upon by the learned Advocate are not applicable in the present matter as under:- (i) M/s. Larsen Tubro Ltd. vs. CCE, reported in 2006 (3) STR 321 (Tri.-LB), The case relates to determining the issue as to whether procurement of orders on behalf of the principals would be covered under the definition of Clearing Forwarding Agent. It has been held that the expression, directly or indirectly and in any manner cannot be ..... 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