TaxTMI 
TaxTMI 
2016 (4) TMI 290
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....ise & Service Tax, Nashik and appeal No. ST/86184/15 filed by M/s. Indian Hotels Company Ltd. is directed against Order-in-Original No. 75 to 78/STC-I/SKS/14-15 dated 25.2.2015 passed by the Commissioner of Service Tax, Mumbai I. 2. The relevant facts that arise for consideration are that M/s. Indian Hotels Company Ltd. ("IHCL" for short) are providing hospitality Services and are having their chain of hotels and resorts all over the world. IHCL provided taxable service under "Management or Business Consultant's Service" to M/s Piem Hotels Ltd. ("Piem", for short) and paid service tax thereon. Being the recipient of such service, Piem have taken the credit of service tax paid such services under Rule 6(5) of Cenvat Credit Rules, wher....
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....Section 65(65) 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 render any advice, consultancy or technical assistance, which shows that the definition of 'Management Consultant' is very wide to cover management of any organization in any manner, in support of which the learned Counsel placed reliance on various judgments like RPG Enterprise Ltd. - 2008 (11) STR 488 (T); Shervani Indus Syndicate - 2009(14) STR 486 (T); Federal Express - 2014 (36) STR 375 (T); Dabur India - 2015 (39) STR 1021 (T) and CBEC Circular No. 1/1/2001-ST dt. 27.6.2001. It was further submitted that the main....
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....ion can be gathered from the various clauses of the agreement. Further, it was submitted that the substance of the Agreement has to be taken into account to understand the true relation for which the Counsel has relied on the Hon'ble Supreme Court judgment in the case of The Bhopal Sugar Industries [(1977) 3 SCC 147] and emphasized that once the substance of agreement is considered, the purpose and object of the arrangement is very clear, i.e. it is an arrangement for providing management consultancy and advice by IHCL for the functioning of various hotels of Piem. Further, the Department has not substantiated as to how and why the services provided by IHCL would be covered under 'Business Auxiliary Service'. The Counsel further sub....
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.... date by filing of appeal. It was her submission that in a similar case of Newlight Hotels & Resorts Ltd; the hotel was availing credit of service tax paid on similar services provided by IHCL and were issued with Show Cause Notice for denial of credit, which was confirmed by the Commissioner and in appeal against the said Order, the Tribunal, vide Final Order No. A/11848/2014 dated 28.10.2014, invoking the ratio of Hon'ble Madras High Court judgment in the case of Mohan Breweries and Hon'ble Supreme Court judgment in the case of Sarvesh Refractories has held that the Revenue cannot change the classification or assessments of services at the recipient's end. So far as the credit taken during the period prior to 1.4.2008, the Cou....
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....le 6(5) of CCR, 2004; 6. We have considered the rival submissions and perused the records and find that the nature of service provided by IHCL is of the kind of advice, consultancy and assistance which are directly in connection with management of the respective hotels. It is clear from the submissions and the records that IHCL is not managing or conducting the hotel business of Piem on their behalf, but are only providing the management consultancy and advice by posting only key senior personnel to assist Piem to conduct their hotel business with their own infrastructure and manpower. Further, it is noticed that IHCL is not providing any service on behalf of Piem to Piem's customers, nor are IHCL promoting the hotel business of Piem....