2014 (8) TMI 56

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....f Punjab at the State level. As Federation of Cooperative Sugar Mills of Punjab, it exercises supervisory control over the sugar mills and monitors their functioning and wherever any steps are required to be taken by a particular sugar mill for improving its efficiency, suitable directions are given for correction of that aspect. The appellant receive an amount equal to 0.3% of the sales turnover from each of the Member Cooperative Sugar Mill. The Department was and the view that the appellant provides Management Consultancy service to cooperative sugar mills constituting the federation and hence the appellant would be liable to pay service tax on the amount being received by them from the sugar mills. On this basis a show cause notice date....

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....ever, upheld. Against this order of the Commissioner (Appeals), these two appeals have been filed. 2. Heard both the sides. 3. Shri Atul Gupta, C.A., the learned Counsel for the appellant, pleaded that the service tax is sought to be charged on the 0.3% of the sales turnover of the Cooperative Sugar Mills being charged by the appellant, that the appellant under the law, is an apex body of the cooperative sugar mills of Punjab and is required to exercise supervisory control over them, monitor their functioning and give timely advice to him for increasing their efficiency, that this activity of the appellant cannot be classified as Management Consultancy Service covered by Section 65 (105) (r) readwith Section 65 (65) of the Finance Act....