TMI Blog2016 (3) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Appellant : Shri Rohan Shah, Advocate with Shri Anay Banhati, Advocate Ms. Sanchita Rungta, Advocate For the Respondent : Shri B. K. Iyer, Supdt. (A.R.) ORDER Per M. V. Ravindran This appeal is directed against Order-in-Appeal No. MI/AV/36/2011 dated 31.01.2011 passed by the Commissioner of Central Excise (Appeals-II), Mumbai-I. 2. Heard both sides and perusal of the records. 3. The appellants are engaged in professional advisory/consultancy services, Corporate Advisory Services, Financial Advisory Services Consulting Services in relation to Merger Acquisitions, to various customers/clients falling under the category of Management consultancy Services. It was noticed by the Revenue that during the period 2000-2001, appellant had not discharged Service Tax liability on the amount received as fees for the Advisory Services Consulting Services in relation to Merger Acquisitions. A show-cause notice dated 10.04.2006 was issued demanding Service Tax for the period, under the category of management consultancy services . Appellant contested the demand on merits as well as on limitation. The adjudicating authority, after following due process of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under:- Management Consultant means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organisation in any manner and includes any person who renders any advice, consultancy or technical assistance, relating to conceptualising, devising, development, modification, rectification or upgradation of any working system of any organisation. Banking other Financial Services means, the following services provided by a banking company or a financial institution including a non-banking financial company, namely:- (i) financial leasing services including equipment leasing and hire-purchase by a body corporate; (ii) credit card services; (iii) merchant banking services; (iv) securities and foreign exchange (forex) broking; (v) asset management including portfolio management, all forms of fund management, pension fund management, custodial depository and trust services, but does not include cash management ; (vi) advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cific service such as Mergers and Acquisitions is covered by it. As we have discussed above, the concept of Management Consultancy is clearly consultancy and technical assistance in the running of the affairs of an organization. The definition itself refers to various aspects of the working system of any organization. Whereas Mergers and Acquisitions is a highly technical and restrictive term. Mergers refer to the mergers of organizations. Similarly, the word acquisition refers to acquisition of another entity by a company. Mergers and acquisitions cannot be related to the running of the affairs of an organization. If such a wide view is taken then, as stated by the learned Counsel, specific service entries in the Finance Act, 1994 such as practicing Chartered Accountants [Section 65 (83)], Cost Accountants [Section 65(84)], and Secretaries [Section65(85)] would all get covered under the definition of Management Consultancy Service . It would render many entries otiose. It is settled law that a service tax entry should be interpreted a contextual manner. Reliance is placed on the Tribunal judgment in the case of Board of Control for Cricket in India Vs. Commr. of Service Tax, Mumba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of both the entries remains unchanged. Certainly, creation of new entries was not by way of bifurcation of the earlier entry inasmuch as the earlier entry relating to advertisement remains unchanged without any change in the tax rate. As such, the introduction of new tariff entry do imply that the coverage in the new tariff for the purposes of tax was an area not covered by the earlier entry. It was so held in case of Glaxo Smithkline Pharmaceutical Ltd. reported in 2006 (3) S.T.R. 711 (T) = 2005 (188) E.L.T. 171 (Tri.-Mumbai) as also in case of M/s. ZEE Telefilms Ltd. M/s. Star India (P) Ltd. v. CCE, Mumbai reported in 2006 (4) S.T.R. 349 (Tribunal) - 2006-TIOL-945-CESTAT-MUM. If it is held that the activity of sponsorship and sale of space were covered under the earlier heading of advertising agency, the same would lead to the redundancy of new legislation and would defeat the legislative intent. From the above, the legal position is that an interpretation of the scope of an entry should not be such which will lead to an illogical situation and lead to unnecessary complexity. The legislative intent should not be negated as held by the Apex Court in the case of Balaj ..... X X X X Extracts X X X X X X X X Extracts X X X X
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