2014 (10) TMI 457

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.... Associates Pvt. Ltd. (hereinafter referred to as the appellants) filed stay application alongwith their appeal against Order-in-Appeal No. 221/S.Tax/D-II/2012 dated 15.11.2012 in terms of which service tax amount of Rs. 24,68,326/- was confirmed alongwith interest and mandatory and other penalties against the appellants for evading Service Tax on management consultancy service. The appellants hav....

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....t of Rs. 27,73,199/-was received by the appellants in convertible foreign exchange and therefore no service tax is leviable thereon. The appellants also referred to CBEC Trade Notice No. 53-CE/(Service Tax)/97 dated 04.07.1997 which in para 4.4 states as under: The services should be rendered to a client directly, and not in the capacity of a sub-consultant associate consultant to another consult....

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....oreign exchange would not merit taxability. It is also seen that the Trade Notice No. 53-CE/97 dated 04.07.1997 in its para 4.4 quoted earlier clearly creates an impression that sub-consultants are not required to pay service tax. Even if the contention of the Ld. AR is conceded that the said Trade Notice does not reflect the correct legal position, it is totally reasonable to accept the appellant....