2014 (11) TMI 312

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.... all over India and followed centralized accounting and are registered with LTU, Bangalore. The appellant avails various taxable services from vendors situated outside India including overseas IBM entities. Appellants have been discharging service tax liability on the receipt of such taxable services treating the same as payable according to their understanding. A summary of the issues raised and the quantum of service tax involved therein are given below:- Description   Amount (Rs.)   Service Tax demanded (Rs.) Total service tax demanded 8,23,73,800   1,00,99,788   Service tax already discharged:     i. Sponsorship service 11,05,350 1,36,621 ii. Business au....

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....e may be, raised by the provider of the taxable service, for the purpose of the transaction. On perusal of the copy of invoice No.53897 dt. 19th September, 2007 appended above, I find that M/s. Lawrence & Lawrence, PC, Mobile, Alabama, USA, who as per the invoice are 'Certified Public Accountants', had raised the said invoice on M/s. IBM India Private Limited, PO Box 12195, Durhan, North Carolina, USA mentioning the description of the service as 'Professional fees and expenses for services rendered for the period of July 1, 2007 through September 13, 2007 in connection with '.It can be seen from the said invoice that M/s. Lawrence & Lawrence, USA were not a legal firm ('Certified Public Accounts' as per the invoice) and some of the services....

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....to agree with these findings at all. In our opinion, it was for the Department to show that the payment made was for service of management consultancy and if the appellant claimed it to be legal consultant or Chartered Accountant service, contrary evidence has to be shown. In this case, just because IBM US has issued invoice and there is no evidence to show that it is actually reimbursement, it has been held that this amounts to management consultancy service. We are not able to appreciate at this prima facie stage. In view of the above, the demand for service tax under the category of management consultancy service, in our opinion, prima facie is not sustainable. As regards manpower supply, the learned counsel relied upon the fact that For....