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2018 (2) TMI 1866 - AT - Service TaxReverse Charge Mechanism - respondent entered into a contract with M/s. Agrinergy Ltd. UK for assistance in implementing clean development mechanism as per Article 12 as Kyoto Protocol - management or business consultant service or not - Held that:- The respondent did not receive any statutory service from UK Company and the transaction is purely commercial in nature. The terms of the agreement and the manner of consideration to be paid clearly make it that the services received by the respondent are covered under the category of management or business consultant service. It is clear that in the present case the respondent did receive consultancy or technical assistance in relation to respondent. The CDM project implemented in such power plant resulted in generation of carbon credits (CERs), which were further transferred on consideration to others by the respondent. As per the agreement 7=% of the total consideration is retained by UK Company, who facilitated by way of consultancy and other related activities in the creation of CDM project. We note that the impugned order misdirected itself while examining the matter of transaction as well as the scope of tax entry for such transaction. The tax liability of the respondent on reverse charge basis is sustainable - appeal allowed - decided in favor of Revenue.
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