2009 (2) TMI 117

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..... of the assessee during the material period represented proceeds realised from its group concern towards management consultancy rendered - There is no finding as to the nature of the service rendered and if the same was taxable under ‘Management Consultancy’ - lower authorities found that the assessee had rendered taxable service without any reliable evidence to substantiate the same - There is no .....

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..... rity found that the appellant had rendered taxable services classifiable under the category 'Management Consultant' during the material period without following statutory formalities including payment of service tax due. He demanded service tax of Rs. 2,20,000 along with appropriate interest. He imposed penalties under sections 76, 77 and 78 of the Finance Act, 1994 ('the Act') on the appellants. .....

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..... on with M/s. Creative Polypack Ltd., another group concern and had accounted the same in their records as 'Management Fee'. The amount did not represent consideration for 'Management Consultancy' rendered to the group concern. The order of the original authority or the order of the Commissioner (Appeals) did not substantiate the finding that the appellants had rendered taxable service classifiable .....

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..... ugned order :— "...they also paid 25 per cent of penalty imposed under section 78 as per the impugned Order-in-Original and revenue has not contested the same, therefore the same is not the subject-matter of this case." 2. I have heard parties on both the appeals. 3. On a careful consideration of the facts of the case and the submissions made, I find that the finding of the authorities b .....

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..... ithout any reliable evidence to substantiate the same. There is no finding as to the activity inyolved and if the same was classifiable under 'Management Consultant'. In the circumstances, the impugned demand of tax, interest and the penalties imposed on APPIPL are held to be not sustainable. The impugned order is set aside and the appeal filed by APPIPL allowed. The appeal filed by the revenue is .....

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