Non-payment of service tax on management consultancy services,...

Non-payment of service tax on management consultancy services, royalty services, intellectual property right services, business auxiliary services, and banking and financial services was challenged. The Tribunal held that no service tax was payable on management consultancy services provided to the Baddi unit as it was a constituent entity. The demand for intellectual property right services for the period October 2004 to March 2012 was set aside as it became taxable only from September 2004. The job-work charges did not amount to rendering of business auxiliary services as finished goods emerged after job work. The demand for banking and financial services was set aside as no such services were rendered by the holding company, and transactions between constituent entities do not attract service tax. The demand for the extended period was also set aside due to the time limitation and lack of suppression, as the appellant had filed returns and paid service tax on management consultancy services.