TaxTMI 
TaxTMI 
2017 (9) TMI 796
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....above Appeals preferred by the Revenue by this common order and judgment. The above Appeals have challenged the impugned orders passed by the Customs, Excise and Service Tax Appellate Tribunal, Mumbai (for short "Appellate Tribunal") dated 3rd February 2016 in Central Excise Appeal No. 3 of 2017 and 11st January 2016 in Central Excise Appeal No. 27 of 2017 respectively. Both of the impugned orders have answered the issue as to service tax being payable on "Merger and Acquisition Services" prior to 16th July 2001 under the category of "Management Consultancy Services" in the negative. For the sake of convenience we are referring to the facts in Central Excise Appeal No. 3 of 2017. 2. The Respondent / Assessee is engaged in professional ad....
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....allenged this impugned order. 3. Mr. Jetly, learned counsel appearing for the Appellant in both the Appeals has contended that service tax is payable on Merger and Acquisition Services prior to 16th July 2001 under the category of "Management Consultancy Services". Mr. Jetly relied upon a board circular No. 1/1/2001-ST (Section - 37-B) dated 27th June 2001, which was issued for taxable services and point No.10 of which reads thus:- "10. Now, therefore, in exercise of the powers conferred under Section 37B of the Central Excise Act, 1944, (as made applicable to service tax by Section 83 of the Finance Act, 1994) the Board hereby clarifies that any services rendered in relation to Merger and Acquisition will be covered under the scope o....
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....h are covered by the said demand notice are listed in para-1 above. We have also gone through various agreements between the appellants and the various clients. (As detailed in para-1). On going through these agreements. It is found that the nature of service is purely advisory in nature. All the advices are relating to the financial restructuring relating to business of various clients. It is true that in few cases in addition to advices, certain executory functions have also been carried out. However, on going through such agreements, we find that these executory functions are consequent to the advice and also again followed up with further advice. It is because of the particular nature of the work/industry that such executory functions h....
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....ition of "Management Consultant". This service has been brought as a separate category for the first time and hence would be taxable under the Banking and Financial Services from 16th July 2001. Mr. Shah has also relied upon the decision of the Division Bench of this Court in Indian National Shipowners' Association V. Union of India 2009 (14) S.T.R. 289 (Bom.), where entry of (zzzzj) was brought in for the first time in Section 65 (105) of Finance Act, 1994 and paragraph 37 of the judgment reads thus:- "Entry (zzzzj) is entirely a new entry. Whereas entry (zzzy) covers services provided to any person in relation to mining of mineral, oil or gas, services covered by entry (zzzz) can be identified by the presence of two characteristics....
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....01 as a separate category under the Banking and Financial Services would also be taxable only from the insertion of the new entry. The above decision of the Division Bench of this Court in Indian National Shipowners Association (Supra) has been affirmed by the Supreme Court in Union of India Vs. Indian National Shipowners Association 2011 (21) S.T.R. 3 (SC). 9. Having considered the arguments, we find merit in the submission of the learned counsel for the Assessee that "Merger and Acquisition Services" having been introduced for the first time as a separate category under Banking and other Financial Services with effect from 16th July 2001 would show that the said service was never a part of Management Consultancy Services which has been....