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2014 (6) TMI 136 - CESTAT MUMBAINature of services provided to group companies - Management Consultancy Services - adjudicating authority has dropped the demand on the ground that the activity of Liaisoning & Representation are not consultancy services - Penalty u/s 76, 77 & 78 - Invocation of extended period of limitation - Held that:- there is no agreement for providing various services. Similarly, there is no invoice to understand the nature of service. However, going through the list of various activities, we note that what is being done is not executory routine or operational functions but the management function wherein the respondent is advising their other group companies to handle a particular issue in a particular manner and they also undertake such discussion with various other organizations such as financial organizations, banks, BCCI, Govt. bodies etc. - activities covered under the definition of management consultant. - Decided against the assessee. Respondents had not taken the registration with the Service Tax department during the said period and therefore, no returns or documents were filed. There was no reason for the respondents not to take the registration. Facts were suppressed from the department. In view of these facts, we find that the conditions stipulated under the proviso to Sec. 73(1) of the Finance Act, 1994 are fulfilled and we therefore hold that the extended period of limitation has been correctly invoked. In view of the said position, penalty under Sec.78 is imposable. We, accordingly, imposed penalty under Section 78, equal to the duty amount. Penalty under Sec.76 as per the provisions existing at that point of time would be leviable. Similarly, penalty under Sec.77 would also be leviable - Decided in favor of Revenue.
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