TMI Blog2017 (2) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... - the appellant had registered as provider of 'credit rating agency service' and there is no reason to infer they deliberately attempted to evade the tax which was to have been passed on to their corporate customers - there is no evidence for invoking the extended period of limitation. Demand set aside - appeal disposed off. - ST/00110/2005 - Final Order No. 42268/2016 - Dated:- 22-7-2016 - Shri P K Choudhary, Member (Judicial) and Shri C J Mathew, Member (Technical) For the Appellant : Shri TK Bhaskar, Adv. For the Respondent : Shri K Veerabhadra Reddy, JC (AR) ORDER M/s ICRA Ltd, a credit rating agency, is liable to tax UNDER SECTION 65 (105)(x) of Finance Act, 1994 for rendering service in relation to a 'cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals), Mumbai in a similar dispute that arose in connection with similar activities at the Mumbai office; that authority found no cause to subject that consideration to tax. He further contended that even if the said activities were liable to tax as determined by the two lower authorities, the computation of interest was erroneous in having applied incorrect rates. According to Learned Counsel, the rates that were applied ranged fromere from 18% to 15% whereas the rate of interest applicable at the time of confirmation of demand was 13%. Most importantly, it was contended that the original authority had clearly declined to impose penalty under section 78 of Finance Act, 1994 and, by doing so, denied the existence of ingredients that were n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 73(1) is invoked. 3. Learned Authorised Representative relied upon circular no.B-11/3/98-TRU dated 7th October 1998 of Central Board of Excise Customs with particular emphasis on paragraph 6.3 and reliance was also placed on circular dated 27th June 2001. It was pointed out therein that the exemption from taxation is limited only to such activities that have no relation to 'credit rating agency service.' However, if any of these excluded activities were liable to tax otherwise there is no escapement. The decision of the Hon'ble Supreme Court in Securities and Exchange Board of India v. Shriram Mutual Fund Another in Appeal No. 9523-9524/2003 dated 23 rd May 2006 was claimed in support. Like-wise, the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sation. The services rendered to M/s. Transocean and M/s. Tide Water as enumerated earlier clearly show that predominantly predominant parts of the said services were advisory (not executionery) and the advices (services) were directly connected with the management of the companies the services were rendered to. The said advices (services) rendered related to conceptualizing, devising, development, modification, rectification or upgradation of the working system of the said companies. Advices on commercial aspects, current developments, import and export policy of India, potential problems and solutions, marketing strategies, alerting them about potential misuse of their IPRs, economic political scenarios etc. were clearly applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the nature described in para 2 above. was also relied upon. 4. We find that the definition of 'management consultancy service' in section 65(105)(r) is that rendered by a 'management or business consultant in connection with the management of any organization or business in any manner ' and 'management or business consultant' has been defined in section 65(65) of Finance Act, 1994 as 'any person, who is engaged in providing any service, either directly or indirectly, in connection with the management of any organization or business in any manner and included an person, who renders.... .... ... ' It would appear that the expression 'management or business consultant' is of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e extending the period for demanding short-recovered tax. To reinforce this conclusion of ours, we rely upon the impugned order which, supra, acknowledges the tentativeness that marked and confusion that pervaded the early years of introduction of service tax. It has also taken note of the ambiguity in various taxable entries that confounded assessees and officers empowered under the Act. As noted by the first appellate authority, the appellant had registered as provider of 'credit rating agency service' and there is no reason to infer they deliberately attempted to evade the tax which was to have been passed on to their corporate customers. We particularly note that though section 80 of Finance Act, 1994 has been invoked as per dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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