Case Law Details
Tata Consultancy Services Limited Vs C.S.T. (CESTAT Delhi)
The first demand has been raised under the category of Franchisee The appellant has developed a course relating to Diploma in Advance Software Technology. Such course has been run through affiliated centers and out of the fee charged from the students, 25 per cent of the fees has been retained by the appellant. Revenue‘s case is that Service Tax is liable to be paid on the said amount retained, under the category of Franchise Services.
The issue has been decided against the assessee in appellant‘s own case CMC Ltd. V/s Commissioner Hyderabad (supra). In the said case, the Tribunal has upheld the demand under the Franchisee Service but set aside the penalty by taking recourse to Section 80 of the Act.
Management Consultancy Service not only include rendering of advice, technical assistance and consultancy but also includes actual management or executor functions
The second part the demand of Service Tax has been raised under the category of Management Consultancy Service. The appellant has entered into an agreement with the Department of Science and Technology (DST). Various activities were required to be carried out by the appellant under this agreement, towards Facility Management Services. The activity included those related to the operations of the computer systems; providing management services; providing technical service; management of computer facility and also providing systems software personnel for installment of software, managing user account, setting up and maintaining the network development of utilities etc. Revenue is of the view that the activities are covered within the definition of Management Consultancy Services. But the appellant has argued that they were responsible for entire operation of the facilities/ system installed in DST through its own personnel. It is their submission that the definition of Management Consultancy Service does not include the actual management or executor functions but only covers rendering of advice, technical assistance and consultancy.
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