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2019 (6) TMI 109 - AT - Service TaxDemand of Service tax - Management Consultancy Services - Franchisee Services - Commercial Training and Coaching Services - CENVAT Credit - denial of credit on the ground of non-production of documents - Rule 9 of CENVAT Credit Rules, 2004. Franchisee Service - grant of representational right - Services in relation to digital signature certificates (DSC) - Sub Certifying authorities - HELD THAT:- As regards Franchisee Service, the findings recorded by the Commissioner clearly show that he has not been able to appreciate as to what is meant by “grant of representational right”. Grant of representational right would imply that the person to whom such rights have been granted under takes the entire activity as if it had been undertaken by the person granting such right. In this case the so called Sub Certifying authorities and Sub CA Administrators (Sub CAA), Registering Authorities and RA-Administration appointed by appellants have any authority to issue DSC certificates, representing them to be issued by appellant. Such transfer of right granted to appellant, by the certifying authority in terms of IT Act, 2000, is also not permissible - It is only the Appellants who could have issued the Digital Signature Certificate and this could not have been done by any other person or agency appointed by appellant. Hence mere act of collecting the applications and verification of the same for onward submission to the appellant cannot be termed as “grant of representational rights”. - Demand set aside. Management Consultancy Service - HELD THAT:- From the scope of work as indicated above, Honeywell has contracted appellants to provide technical support and consultancy for developing a system of smart card for access control. Access Control is part of management system of any organization and is also covered by the term “logistic management”. Since these services have been provided for logistic management or access control system of the organization the services provided will qualify under the category of Management Consultancy Services - the present case will fall within the category of Management Consultancy Services. Commercial Coaching and Training Services - HELD THAT:- The issue is not whether the training activity is primary activity of the appellant or not is immaterial in terms of the definition. If the training of any type is provided which is not falling within the exclusion category specified by the definition then definitely it is to be classified as taxable under that category - in view of the specific finding that training in the software developed has been provided by the appellant for a commercial consideration the same is covered by the definition of Commercial Training and Coaching Services and is taxable accordingly - Demand upheld. Management Maintenance & Repair Service - HELD THAT:- Revenue has sought to brush aside the letter stating that the same was in respect of Chennai Unit and not in respect of Hyderabad Unit, against whom this demand is made. The fig leaf distinction sought to be made do not help the cause of revenue. When a clarification whether write or wrong has been issued by the Board it should apply to all similarly placed units till it is withdrawn. However this letter is enough to give rise to bonafide doubt in the mind of a rationale person/ taxpayer. Issuance of this letter by the Board clearly shows one thing that appellants whether at Chennai or Hyderabad has brought the fact of their undertaking such activities to knowledge of Board - In case the revenue intended to change the opinion or demand the tax in respect of the same they should have done under normal period of limitation. The doubt and confusion in respect of taxation of these services under the category of Management Maintenance and Repair services is enough to uphold the order of Commissioner dropping the demand on ground of limitation. Manpower Recruitment or Supply Services - HELD THAT:- It is not disputed by the appellants that they have in course of their business billed their clients on the basis of time spent by their employees - the Service tax demanded under the category of Manpower Recruitment or Supply Services is maintainable on merits. However the matter needs to be reconsidered by the original authority for determining the issues of limitation and penalty. CENVAT Credit - duty paying documents - denial on the ground of non production of documents - HELD THAT:- Appellants claim that they are in possession of the documents and can produce the same before the adjudicating authority. The end of justice will be met if the matter is remanded back to the adjudicating authority for affording the opportunity to appellants to produce the documents as prescribed by Rule 9 of CENVAT Credit Rules, 2004 for purpose of availment of credit. Commissioner should consider the documents produced by the appellants before him and then decide with regards the admissibility of CENVAT Credit against those documents - matter on remand. Appeal allowed by way of remand.
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