TaxTMI 
TaxTMI 
2013 (12) TMI 1020
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....ransaction of the divesting business of Motor & industrial plants to a strategic acquirer. 4 M/s. Philips India Ltd. Exclusive advisor for divestment of the project business of Philips India Ltd. 5 M/s. Berger Paint India Ltd. Exclusive advisor to Berger paint or its promoter to securing sole/joint management control over identified companies (Project Rangeela-I) 6 M/s. Eicher Good Earth Ltd. Advisor for restructuring its business portfolio, through a de-merger/spin-ff/other similar structure 7 M/s. Spice Communication Ltd. Advisor to client for propose to merger spice cell and itself into a single entity 8 M/s. Choice Hospitality (India) Pvt. Ltd. Exclusive advisor for restructure and substantial divest hotel properties/business and invite bids from interested buyers to purchase/enter into a lease cum management contract for selected properties/business. 9 -do- -do- 10 -do- -do- 11 -do- -do- 12 M/s Chandras Chemical Enterprises Ltd. Exclusive advisor for divest the ownership of brand/business of "dendrite" either in whole or in part to a potential acquirer. 13 M/s. Modikem Pvt. Ltd. Advisor t....
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....tiation and structuring of the transaction. 2. Ld. Counsel for the appellant stated that they are registered stock broker, underwriter and Category-1 Merchant Banker. Learned Counsel further submitted that such services were specifically included in the service tax w.e.f. 16.7.2001 under banking and other financial services and therefore the same could not be taxed prior to 16.7.2001. He further argues that the appeal raises a pertinent question of law as to whether the service provided by the appellant in relation to merchant banking prior to16.7.2001 are subject to service tax under the head 'Management Consulting Service' especially when, w.e.f. 16.7.2001 a specific provision for taxing such service under BOFS was enacted. The next contention of the Ld. Counsel is that they were not providing any advise or consultancy as is anticipated under Management Consultancy Service but the service provided by them are executor in nature and therefore these cannot be called Management Consultancy Service. The next contention of the Ld. Counsel is on the limitation Ld. Counsel argues that Board has issued circular in2001 clarifying the position. In the said circular it is stated that the....
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.... Under the circumstance the service provided is clearly covered by the definition of Management Consultancy service. He further stated that it is incorrect to state that their activities are executor in nature. The impugned order list out all the 30 transactions and it can be found in all cases they have provided advice. In some cases the nature of transaction is such that the advisory has to be followed to execute the same by them and in such transaction they have done some executor function. However such executor functions are subsidiary to the main functions of advising. Ld. A.R. further stated that vide order No. 1/1/2001-ST (Section 37-B), dt. 27.6.2001, Board have issued clarification relating to merger and acquisition service alone. Further, the said order was issued in pursuance of the Public Notice on which certain doubts were raised. Under the circumstances, it cannot be said that extended period cannot be invoked. Ld. AR further stated that in any event the said circular is not applicable to all transactions and only 1/3 of the transaction may be relevant with respect to the clarification. Ld. AR further stated that audit was done for records upto March 2000 and here the....
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....ra 2 supports the case of Revenue rather than appellant. 5. "Management Consultant" means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organization in any manner and includes any person who renders any advice, consultancy or technical assistance, relating to conceptualizing, devising development, modification, rectification or upgradation of any working system of any organization". From the above definition of the "Management Consultant" it is clear that Management Consultant means any person who is engaged in providing any service in connection with the management of any organization in any manner. The definition is very wide and does not restrict itself to any particular filed of Financial Management, Human Resources Management, Marketing Management, Production Management, Logistic Management, Procurement Management and any other area of management of the organization. We find that while examining this issue in the context of merger and acquisition advisory services, Board has obtained the opinion of Indian Institute of Management, Ahmedabad on the subject matter and Indian Institute of Managemen....
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....d other financial services" means, the following services provided by a banking company or a financial institution including a non-banking financial company namely :- (i) financial leasing services including equipment leasing and hire-purchase by a body corporate. (ii) credit card services; (iii) merchant banking services; (iv) securities and foreign exchange (forex) broking, (v) Asset management including portfolio management, all forms of fund management, pension fund management, custodial, depository and trust services; but does not include cash management. (vi) Advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restructuring and strategy; and (vii) provision and transfer of information and data processing." We observe from the above definition that the said definition is very vide and covers whole lot of activities relating to banking and other financial services. Most of these services cannot be included within the scope of the 'Management Consultancy Se....
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.... exclusive. Some of the services are very specific and precise while some are wide in scope. It is for this reason that at times re-course has to be taken to Section 65A for classifying particular services at a particular point of time. We have gone through the judgement of Bombay High court in the case of Indian National Shipowners' Association Vs. Union of India reported in 2009 (14) S.T.R.289 (Bom.). In the said case the dispute was whether particular activity would get covered under the mining service or supply of tangible goods service. The two activities are wide apart and it is in that context that Hon'ble High Court has made certain observations. Similar is the position in the case of Jetlite (India) Ltd. Vs. CCE, Delhi (supra) .... Under the circumstances we reject the appellants contention in this regard. 7. The other contention raised by the appellant is with reference to the limitation. We find that the demand notice has invoked the extended period. We do not find the contention to be sustainable as there is no such stipulation under the relevant law. The appellant was registered as stockbroking service and the audit would confine to the duty payments made relating t....