TMI Blog2008 (12) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... Final Order No. 1385/2008 dt. 5.12.2008 certified on 11.12.2008 in Appeal No. ST/127/2006) Shri Santhanam CA for Appellant Shri V.V. Hariharan, JCDR for Respondents Per P. Karthikeyan : In the impugned order, the Commissioner (Appeals) affirmed liability to tax on services rendered by the appellant under the head "Management Consultant" and "Man-power Recruitment Agency". He directed the original authority to quantify the appellant's liability to service tax under these heads for the period 16.10.98 to 31.7.02. The appellant is a firm of Chartered Accountants by name 'Sridhar and Santhanam'. The appellant had rendered services exigible to tax under the heads Practising Chartered Accountant, Man-power Recruitment Service, Mana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), and in suppression of the notification of Government of India in the Ministry of Finance (Department of Revenue) No.57/ 98-Service Tax, dated the 7th October, 1998, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services provided by a practicing chartered accountant, a practising company secretary or a practising cost accountant, in his professional capacity to a client, other than the taxable services relating to- (i) accounting and auditing; or (ii) cost accounting and cost auditing; or (iii) secretarial auditing; or (iv) verification of declarations in prescribed forms of compli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons under the Foreign Exchange Regulation Act, 1973 (46 of 1973); or (xi) certification in respect of valuation of instruments or assets as per Rule 8A(7) of the Wealth Tax Rules, 1957, from whole of service tax leviable thereon." 3. Notification No.15/02 dated 1st August 2002 reads as under:- "In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act), the Central Government, being satisfied that it is necessary in the public interest so as to do, hereby makes the following amendments in the notification of Government of India in the Ministry of Finance (Department of Revenue) No. 59/98-ST dated 16.10.1998, namely.- In the said notification, the following Expl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No.59/ 98-ST dated 16.10.98, i.e., since the inception of the said notification. The appellant's claim is that the Explanation introduced vide Notification No.15/ 2002-ST (supra) has effect only from the date of its issue. If it is held that the Notification No.15/2002-ST does not have retrospective effect, the liability to tax of the appellants as regards services of 'Management Consultant' and 'Man-power Recruitment Agent' it rendered during the period 16.10.98 to 31.7.02 confirmed in the impugned order does not survive. 5. The learned Chartered Accountant representing the appellant submits that the Show Cause Notice in this case was issued in 2004, whereas the relevant assessment of its service tax liability had been complet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld to be effective only from the date of issue of this notification. The text of the Notification No.59/98-ST does not support denying such exemption as availed by the appellant. Perhaps the legislature did not envisage such a benefit under the said notification and hence the disputed notification was issued. But a legislative intent which is not obvious cannot be read into a notification by the agency which implements the notification. There is a risk in allowing the enforcing agency to read the legislative intent in that the same can be differently interpreted by different persons. A benefit available on a plain reading of the notification cannot be denied retrospectively by issuing a notification. The Explanation introduced under Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X
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