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TMI Blog2014 (9) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant, M/s. Tata Autocomp Systems Ltd. by classifying the services rendered by them under "Management Consultancy Service" for the period 01/04/2001 to 30/06/2003 along with interest thereon and also imposing equivalent amo0unt of penalty under Section 78 of the Finance Act, 1994. Aggrieved of the same, the appellant is before us. 2. The learned counsel for the appellant submits that the appellant had entered into administrative support agreement with various Tata companies for providing following services: i) Support for Land Acquisition and Development ii) Employees benefit Administration (Provident Fund, Superannuation, Gratuity) iii) Liaison with Banks and Financial institu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re not rendering any advice or consultancy in the matter. Basically they are doing liaison work with the Government agencies, banks and financial institutions, and so on. They also undertake training activities for their staff and the clients. These activities are in the nature of the BAS and cannot be, by any stretch of imagination, construed as "Management Consultancy Service". He also submits that they received a consideration of 0.5% of the net sales turn over of the clients for the services rendered. The mode of payment of consideration does not determine the nature the services rendered. The fact that the payments are received as a percentage of the net sales turn over would indicate that the payment is made in the nature of commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the scope of "Management and Consultancy Service". Since in the present case, the appellant is rendering executory functions, the classification under "Management Consultancy Service" is justified. Accordingly, he pleads for upholding the impugned order. 4. We have carefully considered the submissions made by both the sides. 5. We have also perused various services rendered by the appellant as well as the agreement entered into by them with their various clients. From a perusal of these agreements, it is seen that the appellant is rendering administrative support services. They do not give any advice or consultancy as to how to run an organization. The services rendered by them mainly relates to support services to run the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X
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