TaxTMI 
TaxTMI 
2013 (9) TMI 515
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....anagement Consultancy Services" and the appellant had availed CENVAT Credit of the Service Tax paid on these services under Rule 6(5) of the Cenvat Credit Rules, 2004. They availed credit even for such services which were used for both dutiable as well as exempted output services. The department was of the view that the services received by the appellant from abroad do not fall within the taxable service category of Management Consultancy Services but was classifiable under Business Support Services and, therefore, the appellant was not eligible to avail CENVAT Credit of the Service Tax paid on such services under Rule 6(5) of the Cenvat Credit Rules. The period involved in the dispute is 2005-06 to 2007-08. Accordingly to the department, there was a 20% cap for availing CENVAT Credit in respect of Business Support Services during the material time and the credit entitlement was only to the extent of Rs.3.66 crores as against the credit actually taken of Rs.18.34 crores and, therefore, the appellant was liable to reverse the ineligible credit of Rs.14.67 crores. Accordingly, a show-cause notice dated 18.10.2010 was issued proposing to recover CENVAT Credit wrongly availed amounting....
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.... (n) Sub Regional Services These services were categorized as 'Headquarter Management Services' broadly. For the services received by the branch office in India, which is the appellant, the consideration paid by the parent company was debited from the accounts of the branch office. Thus, the services received by the appellant is correctly classifiable under 'Management Consultancy Services' as defined under Section 65(65) of the Finance Act, 1994, which includes any advice, consultancy or technical assistance, in relation to financial management, human resources management, marketing management, production management, logistics management, procurement and management of information technology resources or other similar areas of management. The 'Business Support Services' as defined under Section 65(104c) means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfillment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing....
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....arial assistance known as "Business Centre Services". It is proposed to tax all such outsourced services. If these services are provided on behalf of a person, they are already taxed under Business Auxiliary Service. Definition of support services of business or commerce gives indicative list of outsourced services." From this clarification issued by the Board it is absolutely clear that the services received by the appellant do not come under the category of Business Support Services. (iii) Further, this Tribunal in the case of RPG Enterprises Ltd. Vs. Commissioner of Central Excise, Mumbai-IV - 2008 (11) STR 488 (Tri-Mum) held in a similar situation that the services would be covered under the category of Management Consultancy Services. The ratio of the judgment applies squarely to the facts of the present case and, therefore, they are rightly eligible for CENVAT Credit of the Service Tax paid on these services under the category of Management Consultancy Services and accordingly, the impugned demands are not sustainable. (iv) The learned Counsel further points out that even if it is held that the services received by them falls under th....
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.... on. Even in the invoices raised by the service provider, the services are described as 'Headquarter Management Service'. From the copy of the agreement and the bills raised for the same, it is clear that the services received by the appellant were more appropriately classifiable under the category of Management Consultancy Services. Section 65(65) defines Management Consultancy Services means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organization or business in any manner and includes any person who renders any advice, consultancy or technical assistance, in relation to financial management, human resources management, marketing management, production management, logistics management, procurement and management of information technology resources or other similar areas of management. The scope of the said services was also clarified by the Board vide Circular No.1/1/2001-ST dated 27.6.2001. As per the said Circular 'management consultant' would also include any advisor, who rendered services on any aspect of the management both at the strategic level and also at the operational level. Therefore, the ....