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2016 (12) TMI 1395 - AT - Service TaxClassification of services - classified under the category of Management or Business Consultant Services defined in Section 65 (105) (r) of the Finance Act, 1994 or under Section 65 (105) (y) of the Finance Act, 1994 as Market Research Agency - reverse charge mechanism - Held that: - The nature of the activity undertaken by M/s Gamma for the appellant is to be inferred from the product of such activity available in the form of the report. Such report is titled Market Research. A perusal of the report clearly indicates that the consultant has undertaken research in different parts of Europe with reference to the technical textile business. They have considered the various types of products, their manufacturers, production processes and even the turnover. This activity undertaken is clearly in the nature of market research. Reverse charge mechanism - Held that: - the consultant has carried out market research activity in Europe and for this reason no service tax will be liable to be paid on reverse charge basis. There can be no service tax liability for entering into an agreement, however, the levy arises from relevant activities performed and the classification of such activities are to be decided depending upon which entry specifically covers the activity. The nature of the activity squarely falls to be classified as market research agency - demand of service tax set aside - appeal allowed - decided in favor of appellant-assessee.
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