TaxTMI 
TaxTMI 
2017 (9) TMI 936
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....the order-in-original, the respondent filed appeal before the Commissioner (Appeals), who allowed the appeal of the respondent. Being aggrieved by the impugned order, the Revenue is before us. 2. Shri B. Kumar Iyer Ld. Supdt. (AR.) appearing on behalf of the Revenue reiterating the grounds of appeal submits that the services provided by the appellant are classifiable under head of Management Consultancy Service. The appellant on their own obtained the service tax registration under Management and Consultancy Services on 3.5.1999. They also paid service tax for the half year ending September 1999 under the above said category and in subsequent return the respondent did not pay the service tax. He submits that the respondent shown in their b....
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....e the service provider provides the service in connection with the management of any organization. In the present case the respondent has o connection with the management of the organization. They are providing service of warehousing, transportation, logistics etc. which are independent services provided by the respondent to various clients and not service of management of the organization their clients. It is absolutely cleare that the services provided by the appellant do not fall under the category of management consultancy services. The Ld. Commissioner (Appeals) has given elaborated finding in this regard which is reproduced below: "9. I have carefully gone through the records of this appeal. The appellants written submissions made in....
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.... during the material time correctly. 11. It may be seen that Management Consultancy Services was brought under the Service tax net with effect from 16 October 1998. During the relevant period, as per section 65(65) of the Finance Act, 1904, the term management consultant was defined as under:- "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 renders any advice, consultancy or technical assistance, relating to conceptualizing, devising, development, modification, rectification or upgradation of any working system of any organization". The taxable service means the service provided to a client by a management ....
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....ients organization in any manner or having rendered any advice, consultancy or technical assistance, relating to conceptualizing, devising, development modification, rectification or upgradation of any working system of any organization of their clients. Therefore, it would be very difficult accept the proposition that the Appellants activities of providing logistics services, which included warehousing, dispatch and transportation of goods belonging to their clients, could be categorized as taxable service of the category of management consultant as defined under erstwhile Section 65 (65) of the Finance Act, 1994. The Appellants have claimed that their activities were carried out by following the procedures contained in the operations manu....
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.... (S.C.)] have observed that- "The advisory service of consultant is necessary for taxability. Appellant being in-charge of operation of factory was performing management functions. The activity was not falling within the scope of taxable service". By placing reliance on the aforesaid decision, I hold that the services rendered by the Appellant No.1 during the period April 1999 to September 2000 do not fall under the category of Management Consultancy Services in terms of the definition under Section 65(65) of the Finance Act, 1994. Hence, the demand of service tax proposed under the SCN impugned before the Respondent is held not sustainable in law. When the demand of Service Tax, itself, is found not sustainable, no question arises for r....