TMI Blog2018 (12) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... uous. Obligations were created in terms of the Agreement which have been reproduced in earlier part of the order where the UK Company was also obligated to provide services in marketing the CERs to beget favourable terms for the petitioner- Company. Keeping in mind that such concepts and obligations which have been created in terms of the Kyoto Protocol and the Agreement arising out of climate change, there has been some debate on such issue and no final opinion was available during the period such demand had been made, therefore, the Court could be inclined to hold that there may not be any occasion to impose penalty under Sections 76, 77 and 78 of the Act, 2007/ The appeal is otherwise dismissed except to the extent in relation to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ementing Clean Development Mechanism (CDM) as per Article 12 of the Kyoto Protocol. The services to be provided by the UK Company related to assistance in obtaining registration and certification of CDM projects including project designing, validation, registration and regular verification etc. 4. Not only this, in terms of the Agreement dated 07.12.2004, the said UK Company was also responsible for sale and management of certified emission reduction certificates (CERs), also known as carbon credits which can be bought and sold in international market. The obligations in terms of the agreement which is part of the show-cause notice is required to be reproduced for better clarity and appreciation. xxxxxxx xxxxxxxx 3. Service of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin these sales contracts will be borne by the Project owner. As part of the agreement the Service Provider will advise, assist and help obtain favourable terms for the Project owner so as to avoid any adverse legal/financial implications inherent in the emission reduction purchase contract. The Service provider will have first marketing rights over all CERs, however if the Project owner achieves better terms than those proposed by the Service provider clause 5 will only apply to the terms quoted by the Service provider. Sales not transacted through the service provider must be notified at the earliest possible time by the Project owner to the Service provider. 4. Project costs Costs incurred in project registration such as valid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s provided by the UK Company which will bring it within the mischief of the definition of Section 65(65) of the Act, 2007. 6. The Revenue went in appeal before the Customs Excise and Service Tax Appellate Tribunal (CESTAT) which in turn vide order dated 23.02.2018 reversed the order of the Appellate authority and held that the so called consultancy or the service provided in terms of the Agreement would come within the definition of 'Management or Business Consultant' as per Section 65(65) of the Act, 2007 and Service Tax was payable therein. 7. The submission of the counsel for the petitioner against the order dated 23.02.2018 of the Appellate Tribunal is that the authority should not have gone by the essence of the Agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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