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2016 (10) TMI 390 - AT - Service TaxClassification of service - credit rating activity - financial advisory services in respect of energy, banking, development, finance, transport and urban infrastructure, disinvestment and risk management classified under the head of Banking and Other Financial Services or Management Consultancy Service? - tax paid by the appellant under the head of Banking and Other Financial Services, which came into effect from 16.08.2002, prior to which no tax was payable under this head - whether the authorities are correct in demanding duty prior to the period 16.08.2002 under the head Management Consultancy Service? - Held that: - on the services in question the appellant has been paying Service Tax under the head of Banking and Other Financial Services w.e.f. 16.08.2002 and the Department had accepted the same. That being so, the Department cannot demand Service Tax on the very same activity under the category of Management Consultancy Service. The decision in the case of HSBC SECURITIES & CAPITAL MARKETS (I) PVT. LTD. Versus COMMR. OF ST., MUMBAI [2008 (6) TMI 159 - CESTAT MUMBAI] relied upon where it was held that advisory and due diligence services on acquisition of shares in listed companies rendered to an existing organisation cannot be considered to be Management Consultancy Service. The Board Circular dated 07.10.1998 referred to wherein it was categorically clarified that information and advisory services, if any, rendered by credit rating services would not attract the Service Tax. As per the above discussion, the advisory service provided by the appellant does not fall under the category of Management Consultancy Service, however it is correctly classifiable under Banking and Other Financial Services. Therefore, the same was not taxable prior to 16.08.2002. The demand of Service Tax under the head of Management Consultancy Service is not legal and correct - appeal allowed - decided in favor of appellant.
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