Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2004 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2004 (8) TMI 710 - CESTAT MUMBAIClassification of the services - Liability of the appellant for Service Tax on amounts recovered for management consulting services provided to another company - non-compliance with Service Tax regulations - Penalty - HELD THAT:- None of the heading, as per the certifications, would cover the definition of "Management Consultancy Service" rendered costs. Therefore the levy of Service Tax on these cost cannot be upheld as arrived in the impugned order. Service Tax is in any case not payable on reimbursement/out of pocket expenses charged on actuals as per the clarifications & Trade Notices of the department. When an existing Tariff definition remains the same, then the introduction of new Tariff entry would imply that the coverage under the new Tariff for purpose of Tax is an area not covered by the earlier entry. The new entry is extension of the scope of coverage if Service Tax and not carving out of a new entry, from the erstwhile entry of "Management Consultancy Service". Therefore, it has to be held, that in the facts of this case, the levy of Service Tax on Staff Costs defined by BWIL, under the heading ‘Management Consultancy Service’ cannot be upheld. Levy on such costs could be as on Business Auxiliary Service, which was not a Taxable Service prior to 2003 and appellants is not a service provider as Management Consultant. Once that is found and the appellant cannot be classified as a Service Provider under management Consultant Levy of Service Tax cannot visit prior to 2003 or after 2003 under a ‘Management Consultant’. The Tribunal set aside the orders, allowing the appeal with consequent relief. It was held that since there was no levy of Service Tax on the appellant for the services provided, the penalties imposed, demand of tax, and interest were all to be set aside. Appeal to be allowed with consequent relief.
|