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The Commissioner of Central Excise, Customs & Service Tax Versus M/s. Kotak Mahindra Capital Co. Ltd. And The Commissioner of Central Excise, Customs & Service Tax Versus M/s. DSP Merill Lynch Ltd.

2017 (9) TMI 796 - BOMBAY HIGH COURT

Classification of services - Merger and Acquisition Services - whether classified under the head Banking and other Financial Services or under the head Management Consultancy Services? - Held that: - “Merger and Acquisition Services” having been introduced for the first time as a separate category under Banking and other Financial Services with effect from 16th July 2001 would show that the said service was never a part of Management Consultancy Services which has been in existence at all times .....

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and held that the levy of service tax on this service would be after the insertion of the new entry. - Service tax is payable on Merger and Acquisition Services only upon its insertion in the Banking and Financial Services with effect from 16th July 2001 and was not leviable prior thereto - appeal dismissed - decided against Revenue. - Central Excise Appeal No. 3 of 2017, Central Excise Appeal No. 27 of 2017 - Dated:- 6-9-2017 - A. S. Oka And Riyaz I. Chagla, JJ. Mr. Pradeep S. Jetly, with M .....

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3 of 2017 and 11st January 2016 in Central Excise Appeal No. 27 of 2017 respectively. Both of the impugned orders have answered the issue as to service tax being payable on Merger and Acquisition Services prior to 16th July 2001 under the category of Management Consultancy Services in the negative. For the sake of convenience we are referring to the facts in Central Excise Appeal No. 3 of 2017. 2. The Respondent / Assessee is engaged in professional advisory / consultancy services, corporate ad .....

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Assessee to show cause why service tax amounting to ₹ 37,69,113/- for the period October 2000 to November 2001 under the provisions of Section 73(1) of Finance Act, 1944 is not payable by the Assessee. The Adjudicating Authority vide order dated 29th July 2008 held the services provided by the Assessee to be taxable under Management Consultancy Services and demanded service tax of ₹ 37,69,113/- along with interest and penalty under the provisions of the said Act. The Assessee preferr .....

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Jetly, learned counsel appearing for the Appellant in both the Appeals has contended that service tax is payable on Merger and Acquisition Services prior to 16th July 2001 under the category of Management Consultancy Services . Mr. Jetly relied upon a board circular No. 1/1/2001-ST (Section - 37-B) dated 27th June 2001, which was issued for taxable services and point No.10 of which reads thus:- 10. Now, therefore, in exercise of the powers conferred under Section 37B of the Central Excise Act, 1 .....

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tant means any person who is engaged in the 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. 5. Mr. Jetly has contended that Merger and Acquisition Services come within the definition of Management Consul .....

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Mumbai 2014 (33) S.T.R. 530 (Tri. - Mumbai) , paragraph 4 of which reads thus:- We have given careful thought to the various submissions made by both the sides. The various transactions which are covered by the said demand notice are listed in para-1 above. We have also gone through various agreements between the appellants and the various clients. (As detailed in para-1). On going through these agreements. It is found that the nature of service is purely advisory in nature. All the advices are .....

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ew that main function has been advisory in nature and not execution, execution seems to be incidental to the advisory functions. In view of this position, we reject the appellant's contention that their activities are executory in nature and not advisory. In view of this conclusion, we find that first nine case laws mentioned in Para 2 supports the case of Revenue rather than appellant. 6. Mr. Jetly has submitted that the above decision has held in paragraph No.5 that advisory services in th .....

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d that a plain reading of the definition of Management Consultant it is clear that Management Consultant is to be read in connection with management of an organisation. He has contended that the mere introduction of Merger and Acquisition Services as a separate category under the Banking and Financial Services with effect from 16th July 2001 would show that Merger and Acquisition Services were not included in the definition of Management Consultant . This service has been brought as a separate c .....

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services provided to any person in relation to mining of mineral, oil or gas, services covered by entry (zzzz) can be identified by the presence of two characteristics namely (a) supply of tangible goods including machinery, equipment and appliances for use, (b) there is no transfer of right of possession and effective control of such machinery, equipment and appliances. According to the members of the 1st petitioner, they supply offshore support vessels to carry out jobs like anchor handling to .....

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ctive control of such machinery, equipment and appliances is not parted with. Therefore, those activities clearly fall in entry (zzzzj) and the services rendered by the members of the 1st petitioner have been specifically brought to the levy of Service Tax only upon the insertion of this new entry. 8. Mr. Shah has further contended that the services which were considered in that decision viz. mining services were held to be not taxable prior to the insertion of entry (zzzzj) in Section 65 (105) .....

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