TMI Blog2012 (7) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... CO. LTD. Versus COMMISSIONER OF C. EX., ALLAHABAD [2007 (4) TMI 25 (Tri)] that the agreement entered entrusting operation of factory and not for advice or consultancy,Appellant being in-charge of operation of factory was performing management functions. The activity was not falling within the scope of taxable service - decided in favour of assessee. - ST/27/12-Mum - S/713/2012/CSTB/C-I - Dated:- 16-5-2012 - Ashok Jindal, P R Chandrasekharan, JJ. For Appellants: Shri M H Patil, Adv. For Respondent: Shri V K Singh, Addl. Commissioner (AR) Per: Ashok Jindal: The applicants are seeking waiver of pre-deposit of service tax of Rs.4,85,98,345/- along with interest and various penalties under the Finance Act, 1994, confirmed ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.1 By going through the various clauses of the agreement and particularly sharing of the profit, the department was of the view that the activity undertaken by the applicant falls under the category of Management Consultancy Service'. Therefore, a show-cause notice dated 23.04.2008 was issued for demanding service tax for the period 01.10.2002 to 31.03.2006. The show-cause notice was adjudicated and the same was converted into impugned demands. Therefore, the applicants are before us. 3. Shri M.H.Patil, learned Advocate appearing for the applicants submitted that the applicants are engaged in the activity of running and managing the Hotel and they are not engaged in any Consultancy to LHL. Therefore, their activity does not cover unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly or indirectly, in connection with the Management of the Hotel, the activity undertaken by the applicants is covered under the category of Management Consultancy Service' and the adjudicating authority has rightly confirmed the demands against the applicants. 4.1 With regard to the limitation, the learned A.R submits that the definition of Management Consultancy Service' is clearly spells out that the activity of managing itself is relate to both strategic and operational level functioning of the Hotel and falls under the category of Management Consultancy Service'. As the applicants themselves a managing force of the Hotels, therefore, the extended period has rightly been invoked by the adjudicating authority. 5. Considered the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for advice or consultancy. The advisory service of consultant is necessary for taxability. Appellant being in-charge of operation of factory was performing management functions. The activity was not falling within the scope of taxable service. 6.1 Further, we have also gone through the various clauses of the agreement which was confirmed by the Hon'ble Apex Court also and we find that the applicants have taken over the activities of managing/running the Hotel themselves. Therefore, prima facie, we are of the view that the applicants are not a Management Consultant in the light of above discussion and reliance of the decision of this Tribunal in the case of Basti Sugar Mills Co. Ltd. (supra). Therefore, the demand under the category of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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