TaxTMI 
TaxTMI 
2007 (11) TMI 179
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.... accounts, preparation of monthly bills, preparation of skeleton bills, accounting of demands and recoveries, maintenance of daily abstracts and tallying, preparation and issue of disconnection lists to field staff and preparation of union M/s and consolidated DCR statements. The confirmation has been done on the ground that these are taxable services of accounting provided by a practicing chartered accountant in his professional capacity and Notification No. 59/98 S.T. dated 16-10-1998 includes such a service of accounting for attracting levy of Service Tax on professional services of a practicing chartered accountant. 2. The appellant on the other hand contended that services provided to M/s MESCOM were not provided by him in his professional capacity as a practicing chartered accountant and that the service actually done was limited to maintenance of consumer details and billing related activity which did not amount to professional accounting service of a practicing chartered accountant. The appellant has however not claimed any alternative classification for services offered. 3. The issue of dispute is mainly whether the appellant offered his services in his professional capa....
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....ounting which involved application of principles and procedures of accounting which cannot be dispensed with on account of computerization of ledgers and which cannot be attended by persons other than a chartered accountant. 6. I therefore come to a conclusion that notwithstanding the fact that contract was offered to appellant on account of his being a empanelled chartered accountant, the nature and scope of work given and conditions of work envisaged makes it clear that the services were neither offered nor provided as a professional service of accounting attracting Service Tax liability in terms of Notification No. 59/1998 S.T. by attracting classification under category of services provided by a practicing chartered accountant. 7. Even if it is accepted that the service was offered in professional capacity only, I find not all professional services were liable to tax. 8. Thus the second issue is whether ledger maintenance and billing related work done by the appellant amounted to professional service of accounting done by a practicing chartered accountant attracting Notification No. 59/1998-S.T. for levy of Service Tax since all services rendered by a practicing chartered ac....
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....hartered accountant in his professional capacity. 11. It is therefore clear from the scope of contract that the appellant actually provided services of ledger maintenance, by way of deputing manpower, as per plans and specification already determined for transactions limited to the area of billing, recoveries, etc. and generated relevant MIS and DCB statement. These statements and reports do not amount to a balance sheet for M/s MESCOM. I therefore come to a conclusion that services provided by the appellant to M/s MESCOM do not amount to a professional service of accounting provided by a practicing chartered account and accordingly did not attract Service Tax liability in terms of Notification No. 59/1998 S.T.I also hold that ledger maintenance is only an ingredient and process of professional accounting, which involves several other stages and processes resulting in production of a balance sheet for the client. The work of ledger maintenance by a practicing chartered accountant did not attract Service Tax under Notification No. 59/1998 S.T. 12. I find that the appellant has not claimed any alternative classification. The impugned order is confined to confirming classification u....
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....all transactions in monetary terms. It is submitted that the respondent is accounting and maintaining revenue accounts of the company (M/s. MESCOM), which is within the scope of taxable service provided by the practising Chartered Accountant, in terms of Sl. No. (i) Accounting and Auditing of Notification No. 59/98-S.T. dated 16-10-1998. Therefore, the Commissioner (Appeals)'s order is not correct. Several grounds raised in the memo of appeal were read through and the learned SDR distinguishes the order given in respect of the same issue by this bench in the case of M/s. Jaded Siddappa & Co v. CCE and vice versa by Final Order Nos. 1146 to 1148/2007 dated 26-9-2007 [2008 (9) S.T.R. 239 (T)]. The learned SDR submits that the work details in the present case is different from the one which was decided by the Tribunal and as the activity squarely fell within the ambit of Chartered Accountant's category, therefore, the Order-in-Original should be restored. 5. The learned Counsel relies on the finding rendered by this Bench in Jaded Siddappa and vice versa by Final Order Nos. 1146 to 1148/2007 and prayed for upholding the order. He submits that the assessees were not carrying on the ac....
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....ssional services or assistance in or about matters of principle or detail relating to accounting procedure or the recording, presentation or certification of financial facts or data; or Comment : This is also about advise or guidance for recording or accounting and not the recording itself. (iv) renders such other services as, in the opinion of the Council, are or may be rendered by the Chartered Accountant in practice; and the words "to be in practice" with their grammatical variations and cognate expressions shall be construed accordingly. Pursuant to clause (iv) above the Council has resolved that in its opinion the services that may be rendered by a Chartered Accountant in practice includes (a) the entire range of Management Consultancy Services. (b) in his professional capacity (and neither in his capacity nor in his capacity as an employee), acts as a liquidator, trustee, executor, administrator, arbitrator, receiver, adviser or representative of costing, financial or taxation matters or takes up an appointment made by the Central Government or a State Government or a Court or law or any other legal authority or acts as Secretary unless his employment is on a sala....