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TMI Blog2009 (6) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... MA. – Demand within the category of management consultant service – Held that – stay granted in part. - ST/28 OF 2009 - S/237/2009/CSTB/C-II - Dated:- 25-6-2009 - A.K. SRIVASTAVA, TECHNICAL MEMBER and ASHOK JINDAL, JUDICIAL MEMBER Bharat Raichandani for the Applicant. Manish Mohan for the Respondent. ORDER A.K. Srivastava, Technical Member.- This stay petition has been filed by the applicants against the impugned order passed by the Commissioner (Appeals) by which he has upheld the Order-in-Original passed by the Joint Commissioner. As a result, the applicants are required to pay service tax of Rs. 7,50,000 together with interest and the penalties levied under sections 75A, 76, 77 and 78 of the Finance Act, 1994. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xecuting any other function as may be indicated by DUPHAR PHARMA as per the directions, overall guidance of DUPHAR PHARMA and in line with the policies and planning done by DUPHAR PHARMA. 4. In consideration for the above work, DUPHAR PHARMA shall pay DUPHAR INTERFRAN a lump sum consideration of Rs. 15,000,000 for the work done up to 30-9-2001. In case the services are required after 1-10-2001 the Managing Directors of both the Companies may decide mutually the consideration for such services." 5. Management Consultant is defined under section 65(65) of the Finance Act, l994 as under: "(65) 'management consultant' means any person who is engaged in providing any service, either directly or indirectly, in connection with the manageme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. The services rendered by the applicants as indicated at paras 2(a) and 2(g) and para 3 of the Support Agreement dated 5-5-2001 reproduced above are prima facie in the nature of Management Consultancy Services relating to production, finance and marketing etc. 7. The applicants have relied upon the following case laws in support of their claim that the functions performed by them do not fall within the ambit or Management Consultancy Services:- (i) Nirulas Corner House (P.) Ltd v. CST [2009] 19 STT 373 (New Delhi-CESTAT), (ii) Telephone Cables Ltd. v. CCE [2007] 9 STT 311 (New Delhi-CESTAT), (iii) Sterlite Optical Technologies Ltd. v. CCE [Final Order Nos. A/2634-2635/2008, dated 11-12-2008] (iv) CST v. Goetze ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from Management Consultant. 9. In a nutshell, each case has to be examined on merits. Keeping in view the nature of the activities performed/services rendered by the applicants to M/s. Duphar Pharma vis-a-vis Support Agreement dated 5-5-2001, we are prima facie of the view that the same will be covered within the definition of Management Consultancy Services and the applicants arc liable to pay service tax. 10. Keeping in view the facts and circumstances of the case, we direct the applicants to pre-deposit a sum of Rs. 3,75,000 (Rupees three lakhs seventy five thousand only) towards service tax within 6 weeks of the receipt of this order and report compliance on 25-8-2009. On pre-depositing the said amount within the stipulated per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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