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TMI Blog2024 (2) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... tation - the whole of the demand is barred by limitation. The impugned order is set aside - appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... The liability of service tax on the categories mentioned above are discussed as below: (i) Consulting fee (other than Management consulting) - Rs5,67,322/- The Appellant stated that they provide a comprehensive range of services such as data collection and analysis, manpower mobilization, liaison, training supervision in addition to management consulting. These activities are not liable to be classified under 'Management Consultancy Service'. The impugned order has classified the entire activity under management consultancy and demanded service tax. To levy of Service tax under Management Consultancy service as defined in Section 65(105)(r) read with Section 65(65) of the Act , the following conditions must be satisfied. * Any service either directly or indirectly in connection with the management of any organization in any manner would be a management consultancy service. * It includes rendering of any advice, consultancy, or technical assistance relating to conceptualizing, devising, development, modification, rectification or up gradation of any working system of any organization. * Such service has to be provided by the service provider to a client. 12. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cations issued by the Board in the early stage of evolution of service tax levy and connected laws. These instructions were issued in view of different factors like, (i) Even prior to the introduction of Cenvat Scheme for service tax, the policy of the government was to tax the same service only once, that is in the hands of the main person providing the service. There was no intention to tax the same value twice in the hands of two different parties rendering different part of the same service. This situation is most aptly demonstrated by the service rendered by a stock broker and that rendered by a sub-broker to a broker. Sub-broker receives payment from the brokerage charged by the broker who was already paying tax on the full brokerage. Similar was the situation in the case of advertising agency. Many persons do different parts of the job of advertising like conceptualisation, the making of the advertisement, display of the advertisement etc. The policy was to tax the amount involved only once that is when the main advertising agency raises bill on the client who benefits from the advertisement. Though many Circulars were quoted the text of only one could be seen that is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considering that the main contractor had paid tax for the full value. However the policy that if the main contractor has paid service tax, the sub-contractor need not pay tax again on the same service, for periods prior to introduction of Cenvat Scheme is reasonable and acceptable based on the Board's Circulars, for maintaining equality before law. In this case no argument is raised that the main contractor namely, HAL has discharged service tax liability. But if evidence is produced to that effect the demand on the sub-contractor is not maintainable. 16. The argument that they can claim an exemption at any stage of the proceedings is now settled because of the decision of Apex Court in Share Medical Care v. UOI - 2007 (209) E.L.T. 321. The Commissioner (Appeal) has erred in not considering the claim of the Appellant for exemption under Notification No. 12/2003- S.T., when evidence regarding value of goods sold was apparently produced by the Appellant. 17. The finding of the adjudicating authority has not explained the reasons for finding in para 4.7 without contradicting the claims of the Appellant as recorded in 3.9 of the order. If the entire matter could be decided just b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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