TaxTMI 
TaxTMI 
TaxTMI 
2016 (3) TMI 309
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....rvices in relation to Merger & Acquisitions. A show-cause notice dated 10.04.2006 was issued demanding Service Tax for the period, under the category of management consultancy services . Appellant contested the demand on merits as well as on limitation. The adjudicating authority, after following due process of law, confirmed the demands raised with interest and also imposed penalties. Aggrieved by such an order appeal was preferred, first appellate authority did not agree with contentions raised and concurred with adjudicating authority s order. 4. Learned Counsel appearing for the appellant takes us the entire case records. It is his submission that the lower authorities erred in coming to a conclusion that during the period of question that appellant rendered Management Consultancy Services. He would submit as the Service Tax liability on advisory services was introduced as a separate category under the Banking and Other Financial Services, w.e.f. 16.07.2001. He would submit that they have discharged the Service Tax from 16.07.2001. He would submit that since a new category of the services was introduced w.e.f. 16.07.2001, no Service Tax liability arises for the period prior to....
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....ement, 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; 8. It can be seen above that services as rendered by the appellant, would not fall under Management consultancy Services, as there services rendered by the appellant may not get covered even as per CBEC Circular dated 26.07.2001. We do not agree with the arguments of learned Departmental Representative, for the simple reason on the question of Merger & Acquisitions (as per the CBEC) was considered by this Bench in the case of DSP Merrill Lynch Limited (supra) and in para 11 it is held that :- "11. Revenue has challenged the vacation of demand on Merger and Acquisition services by the Commissioner on the grounds of limitation. We may examine the issue on merits. The Ld. Commissioner AR referred to the Principal Bench in the case of Jetlite (India) Ltd. Vs. Commissioner of C. Ex. New Delhi 2011 (21) STR ....
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....Consultancy Service . It would render many entries otiose. It is settled law that a service tax entry should be interpreted a contextual manner. Reliance is placed on the Tribunal judgment in the case of Board of Control for Cricket in India Vs. Commr. of Service Tax, Mumbai 2007 (7) S.T.R. 384 (Tri.-Mumbai). It was held that - 9. In view of the above guidelines laid down by Hon'ble High Court, the expression in relation to, though expansive, has to be read in context and cannot be given such a vast meaning so as to cover any activity, howsoever remotely connected, if there is some element of display or exhibition of the same. The definition has to be interpreted, in a sense appropriate to the phrase defined and to the general purpose of enactment. (I.L.M. Cadija Umma & Another v. S. Don Manis Appu, AIR 1939 Privy Council 63). Similarly, Hon'ble Supreme Court in case of Hariprasad Shivshankar Shukla v. A.D. Divelkar reported in AIR 1957 S.C. 121 held that terminating the services of all the employees on taking over railway company by Govt. of India cannot be considered as retrenchment. Inasmuch as retrenchment connotes that the business itself is being continued, but the portion....
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....above, the legal position is that an interpretation of the scope of an entry should not be such which will lead to an illogical situation and lead to unnecessary complexity. The legislative intent should not be negated as held by the Apex Court in the case of Balaji Enterprises (supra). We respectfully follow the High Court judgment in the case Indian National Shipowners Association (supra). The new entry of Mergers and Acquisitions extends the coverage of service tax and is not the result of carving out a new entry from the Management Consultancy Service. Consequently we hold that service tax is not payable on M&A Services prior to 16.7.2001 under the category of Management Consultancy Service ." It can be seen, that Bench discarded learned Departmental Representative s arguments that these services are covered under the Management consultancy Services. We find that in another judgement in the case of Indian National Shipowners Association ratio of para No. 37-38 as to taxability of new entry was decided. We reproduce the said paragraphs:- "37. Entry (zzzzj) is entirely a new entry. Whereas entry (zzzy) covers services provided to any person in relation to mining of mine....