TMI Blog2018 (2) TMI 1567X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that: - The guidelines in Code of Ethics framed under the Chartered Accountant Act, 1949 categorically state that Chartered Accountant can practice to render entire range of Management Consultancy and other Services . The appellant contested the tax liability for services rendered to Dishnet DSL Ltd. and Essel Mining Industries on the ground that these are more in the nature of legal services - the scope of tax entry for Management Consultant Service covers any service, either directly or indirectly, in connection with management of any organization in any manner and includes any person who renders any advice, consultancy or technical assistance, relating to conceptualising, designing, development, modification, rectification or up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , retainer service etc., to various corporate entities. 2. After conducting certain audit and verification of records of the appellant, the Revenue entertained a view that such of the above activities like legal assistance, advisory work etc. were taxable under Management, Consultant service in terms of Section 65 (65) read with Section 65 (105) (r) of Finance Act, 1994. Accordingly, proceedings initiated against the appellant resulted in the impugned order dated 28.12.2010 confirming tax demand of ₹ 90,83,091/- with penalties under Section 77 and 78 of the Act. 3. The Ld. Advocate appearing for the appellant submitted that the impugned demand is not sustainable on the following grounds : a) Notification No.59/98-ST dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch tax liability. e) In any case, even if the appellant is liable to pay and paid such tax the corporate clients would be eligible for credit. Hence it is a revenue-neutral situation. No suppression of fact can be established in such circumstances. f) Demand for extended period is not sustainable as there is no case for wilful misstatement, suppression of fact etc. in the present dispute. On the same basis, no penalties are also imposable. 4. The Ld. A.R supported the findings of the lower authority. He submitted that the nature of services rendered by the appellant to various corporate entities have been examined and there can be no challenge to the finding that these are essentially Management Consultant Services . 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 56 (1 of 1956); or vi. certification that requirements of Schedule XIII to the Companies Act, 1956 (1 of 1956) have been complied with as regards statutory guidelines for appointment of managerial personnel and payment of managerial remuneration to them without the approval of the Central Government under section 269 and Schedule XIII, of the Companies Act, 1956 (1 of 1956); or vii. certification of documents to be filed by companies with the Registrar of Companies under the Companies Act, 1956 (1 of 1956; or viii. certification in Form 1 that the whole of the amount remaining unpaid or unclaimed for a period of three years from the date of transfer to special account under sub-section (1) and sub-section (2) of section 205 A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uitment agency, as the case may be. Therefore no exemption under this notification shall be applicable to such practising chartered accountant, a practising company secretary or a practising cost accountant. 6. On careful perusal of the above provisions, we find that the same have been properly examined and analysed by the impugned order. The finding in order dt. 28.12.2010 is as below ; I find that the rationale behind the explanation is that, as rightly pointed out by the assessee themselves that a more specific classification when available must be preferred to a general one since the Management Consultant Service was already in existence from 16/10/1998 and that some of the Services are in the nature of Management Consultancy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .4 defines such services. We have perused the same. We are in agreement with the finding recorded by the lower authority on this issue. 8. The appellant contested the tax liability for services rendered to Dishnet DSL Ltd. and Essel Mining Industries on the ground that these are more in the nature of legal services. We have perused the relevant agreements. For Dishnet, the appellant was to provide legal services and other services that shall be especially required by Dishnet. The scope of service is very general-legal, legal documentation and legal negotiation services. Similarly, for Essel Mining Company Ltd., it is seen from invoice dated 3.2.2006 that legal and strategic advisory services have been provided. We have perused the scop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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