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2018 (5) TMI 34 - AT - Service TaxDemand of service tax - Business Auxiliary Services - Scientific and Technical Consultancy Services - Online Database Access and Retrieval Service - Management Consultancy Service”. Demand under the head of "Business Auxiliary Services" had been raised in respect of amount paid to the distributors - Held that: - reliance placed in the case of Genom Biotech Pvt. Ltd. Vs. CCE, Nashik [2016 (3) TMI 139 - CESTAT MUMBAI], where it was held that Since the appellant has no requirement of 'advertising agency service' for manufacture and export of goods, the tax demanded in the impugned order is not on the consideration for a service received in India but a tax on the funds transferred in a cross-border transaction. Such a tax is not contemplated in Finance Act, 1994. Therefore, no Service tax can be demanded - no Service Tax can be demanded on the said service. Scientific and Technical Consultancy Services - it is argued that regulatory services obtained for getting service of their product registered/approved by authorities abroad cannot be classifiable under the head of “Scientific and Technical Consultancy Services” - Held that: - the regulatory services are not in the nature of “Scientific and Technical Consultancy Services” and therefore no Service Tax under the said head - reliance placed in the case of Administrative Staff College of India [2008 (8) TMI 194 - CESTAT, BANGALORE] - demand set aside. Online Database Access and Retrieval Service - It has been argued that the said service provider does not provide “online” services and there is no “online” service provider - Held that: - In absence of online database access, no Service Tax can be demanded under the head of “Online Database Access and Retrieval Service” - demand set aside. Management Consultancy Service - It has been argued that under “Management Consultancy Service” only activities in the nature of management of any organisation are covered - Held that: - It is seen that the service provided by technical assistance and consultancy in identifying avenue and product promotion. The said activity falls under the “Management Consultancy Service” - demand upheld. Revenue neutrality - Held that: - The data submitted by them, shows that part of the final product is exempted and therefore the situation is not fully revenue neutral. Penalty u/s 76 and 78 set aside by invoking section 80. Appeal allowed in part.
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