TMI Blog2007 (2) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... agent to sell products manufactured by or on behalf of the other party. In terms of the agreement, the appellant was to provide comprehensive service in regard to market development, marketing sales and other connected services in regard to the products covered by the agreement. 2. In July 2003, business auxiliary service was brought under service tax. On 29/31-7-2003 the appellant wrote a letter to the Deputy Commissioner of Central Excise, Gurgaon stating that it is advised that it is not liable to any service tax in relation to the agreement. The letter sought confirmation that the appellant is not liable to pay service tax. The appellant wrote another letter on August 25, 2003 intimating that they were paying tax under protest in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the same being compensated in actuals will not render them Management consultant would ipso facto is not exempt them from the visit of Service Tax, is not accepted following Kerala Colour Labs Association [2003 (156) E.L.T. 17] relied upon by the Id. DR. It is the rendering of service that is taxed not belonging to a profession, trade or calling. The taxable event would arise if the Service is rendered . The considerations to defer the Service rendered import full or at profit is not relevant as taxable event will determine the Tax not the compensation thereof, (see also Parasmal Bam [2002 (146) E.L.T. 717]. (b) Examining the costs deferred by BWIL it is found that other expenses are on account of following factors fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the products of BWIL. CBEC vide circular dated 27-7-2001 has clarified that the intention is to Tax the Advisory Services provided by the consultants, and not the Executory Services provided by a contractor. The staff costs as incurred reimbursed for 8 teams in marketing exclusively for BWIL, as ably presented by the ld. DR, would be conducting Executory Functions not Advisory Functions, The definition of Management Consultant reads as under - (65) 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 advise, consultancy or technical assistance, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ier 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 Cost 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 appellant is not a service provider as Management Consultant. (d) Once that is found, 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 and a Management Consultant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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