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2018 (2) TMI 831 - AT - Service TaxValidity of SCN - Classification of services - appellants had provided certain services to various organizations on behalf of the main consultants, with whom the appellant had entered into the agreement for providing such service - whether the services provided by the appellant should be classifiable under “Management Consultancy Service” or “Business Auxiliary Service? - Held that: - it transpires that in case of Management or Business Consultant, there must be involvement two persons in the contract, one is the service provider and the other is the service recipient. On the contrary, in the case of “Business Auxiliary Service”, the said service involves more than two persons in order to perform such service. In the case in hand, the appellant claimed that it had provided services to different parties, mostly Government Organizations, parties situated within the country or on behalf of the main consultant. The Department has also not countered the submission of the appellant. Thus, it is evident that the appellant has provided this service to the third parties on behalf of the main consultant - the services provided by the appellant should merit classification under “Business Auxiliary Service” - cannot taxed under “Management Consultancy Service” - Demand cannot sustain on the ground of wrong classification of the service Appeal allowed - decided in favor of appellant.
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