Case Law Details
1. The Appellant by the present Appeal is challenging order dated 18th May 2016 passed by the Customs, Excise and Service Tax Appellate Tribunal, West Zonal Bench at Mumbai (for short “Appellate Tribunal”).
2. The Respondent undertakes “Financial Advisory Services” in respect of energy, banking, development, finance, transport and urban infrastructure, disinvestment and risk management. The Appellant was paying service tax on the aforementioned services under the head of “Banking and other Financial Services” with effect from 16th August 2002. A show cause notice dated 20th February 2003 was issued for the period 1999-2000 to 2001-2002 demanding service tax of Rs. 1,50,42,302/- by classifying the Financial Advisory Services rendered by the Respondent under the category of “Management Consultancy Service”. By an Order-in-Original dated 31st October 2011, the Adjudicating Authority viz. Commissioner of Central Excise, Thane – I confirmed the demand of Rs. 1,50,42,302/- along with interest thereon and imposed penalties under the provisions of Finance Act, 1994. The Respondent being aggrieved by the Order-in-Original dated 31st October 2011 preferred an Appeal before the Appellate Tribunal. The Appellate Tribunal allowed the Appeal of the Appellant and set aside the order of the Adjudicating Authority dated 31st October 2011. The Appellant has challenged the impugned order in the present Appeal.
3. Mr. Dwivedi the learned counsel for the Appellant has submitted that the Financial Advisory Services provided by the Respondent falls under “Management Consultancy Services” and would be liable to service tax prior to 16th August 2002 when the Advisory and Financial Services were included in “Banking and other Financial Services”. He has contended that the Financial Advisory Services would fall within the definition of “Management Consultant” under Section 65 (37) of the Finance Act, which reads thus:-
“Management Consultant” Under Section 65 (37) means, ‘any person who is engaged in providing any service, either directly or indirectly in connection with the management of any organization in any manner and includes nay person who renders any advice, consultancy or technical assistance relating to conceptualizing devising, development, modification, rectification or up-gradation of any working system of any organization. Please become a member. If you are already a member, login here to access the full content.
