9911796707
TMI Blog2018 (6) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... od 2008-09 to 2009-10. During the course of audit of the account of the assessee by the Departmental Officers, it was noticed that the appellant has rendered non-binding investment advisory service to its holding company i.e. M/s Ivahone Hoardings Mauritius (IHM). The department, after considering the agreement relevant to the case, was of the opinion that the appellant had rendered services in the nature of "Real Estate Advisory Servicers" which were liable to payment of Service Tax under Real Estate Agent Service under Section 65 (88) of the Finance Act, 1994. The Service Tax was demanded from the appellant on reverse charge basis. 3. The appellant also employed expatriates who are experts in the area of investment advisory. Such expatri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ata, reports etc. c. The Advisory Services are defined in Clause 3.2 to include identification and advise on investment opportunities to IHM in diverse sectors including Real Estate Companies and projects, providing Financial and Economic market intelligence reports, providing information on investment targets, structuring of investments as well as exit options. d. In consideration of the services, the Appellant entitled to a service fee which is paid by IHM quarterly. e. Since the aforementioned services of the Appellant were in the nature of advisory relating to investment and portfolio research, acquisition of companies, restructuring and strategy etc., the Appellant took registration as a service provider of Banking and Financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l estate has to be read in context and cannot be expanded to cover the investment in the companies engaged in the business of real estate. The investment in the shares of the company does not mean investment in the 'real estate' held by the target companies. a. CST, Mumbai v. NV Advisory Services Pvt. Ltd., 2015 (39) STR 210 (Tri-Mum) rendered in the context of B&FS services only. b. Mount Kellet Management (I) Pvt. Ltd. v. CST, Mumbai 2015 (40) STR 165 (Tri-Mum) rendered in the context of B&FS services only. c. AGM India Advisors Pvt. V. CST, Mumbai 2016-TIOL-40-CESTAT-MUM (Tri-Mum) d. AMP Capital Advisors India Pvt. Ltd. v. CST, 2015 (40) STR 577 (Tri-Mum) It was also argued that in various case laws, such an arrangement has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leasing or renting, of real estate and includes a real estate consultant; Section 65(89) "real estate consultant" means a person who renders in any manner, either directly or indirectly, advice, consultancy or technical assistance, in relation to evaluation, conception, design, development, construction, implementation, supervision, maintenance, marketing, acquisition or management, of real estate. 10. The above definition clearly states that it covers any service only in relation to sale/purchase/leasing, etc., of real estate. Upon perusal of the Advisory Service Agreement, dated 10.03.2009 between the appellant and its holding company, i.e., IHM, it is seen that the appellant is required to render investment advisory services in connec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued by the appellant to the expatriates which make it clear that such expatriates will be employees of the appellant during the period of their assignments to the appellant. Further, the Income-Tax returns filed by the expatriates clearly shows the appellant as their employer and Income-Tax has also been paid for the amounts received by the expatriates in India, under the category of salary.
13. In view of the above, we are of the view that there can be no levy of Service-Tax under the category of manpower supply since the expatriates were enjoying the employee-employer relationship with the appellant.
14. In the result, the entire impugned order is set aside and the appeal is allowed.
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