Tribunal grants rebate on service tax for consultancy services, citing expanded taxable services definition post-Finance Act 2012.

The Tribunal overturned the Commissioner (Appeals)'s decision to reject rebate claims on service tax paid for consultancy services provided by a Chartered Accountant to a soap stone manufacturer for exporting soap stone. The Commissioner's new ground for rejection, based on the services being beyond the scope of the Chartered Accountants Act, was deemed unsustainable. The Tribunal held that post Finance Act, 2012, the definition of taxable services changed, allowing for business consultancy services to be eligible for rebate. The Tribunal directed the adjudicating authority to grant the rebate amount with interest within 45 days.

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Issues:
1. Rebate claim on service tax paid for specified services used in export of soap stone.
2. Rejection of rebate claims by Original Authority and Commissioner (Appeals) based on lack of nexus with export consignment.
3. New ground for rejection by Commissioner (Appeals) - Professional consultancy by Chartered Accountant.
4. Interpretation of relevant provisions post Finance Act, 2012.
5. Appeal against rejection of rebate claims.

Analysis:
1. The appellant, a soap stone manufacturer, claimed rebate on service tax paid for services used in exporting soap stone. The appellant, not registered under Central Excise or Service Tax Rules, had a service tax code as per Notification No. 41/2012-ST. The rebate claims were disputed in three appeals arising from a single Order-in-Appeal.

2. The Original Authority and Commissioner (Appeals) rejected rebate claims citing lack of nexus between received services and export consignment activities. Previous appeals were allowed by CESTAT, but the Commissioner (Appeals) rejected the current appeals on a new ground related to professional consultancy by a Chartered Accountant.

3. The Commissioner (Appeals) rejected the appeals based on invoices issued by a Chartered Accountant, claiming the services provided were beyond the scope of the Chartered Accountants Act, 1949. The Commissioner's decision was deemed contrary to law and unsustainable, as it introduced a new ground not present in the original proceedings.

4. Post Finance Act, 2012, the definition of taxable services changed, making any activity for consideration a taxable service if not in the negative list. The Commissioner's decision was challenged for misinterpretation of relevant provisions and applying them incorrectly to the case at hand.

5. After considering the contentions and facts, the Tribunal found no prohibition on a Chartered Accountant providing business consultancy for export. The Commissioner's decision was overturned, and the rebate on Service Tax paid for consultancy services was allowed. The adjudicating authority was directed to grant the rebate amount with interest within 45 days.

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