2018 (12) TMI 506

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....thority was payable in terms of the definition given in Section 65 (65) of the Finance Act, 2007 (for short, 'the Act, 2007'). 2. The definition reads as under: "management or business consultant" means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organisation or business in any manner and includes any person who renders any advice, consultancy or technical assistance, in relation to financial management, human resources management, marketing management, production management, logistics management, procurement and management of information technology resources or other similar areas of management." 3. The petitioner- Company is manufacturer of Iron an....

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....e for these services. The Service provider will produce the Project Design Document and will arrange for the registration of the project with the CDM Executive Board. The Service provider will market the CERs resulting from the CDM project and will endeavour to obtain the most favourable terms for the Project owner. The Service provider will produce all documentation required to obtain a purchase contract for the CERs resulting from the CDM project. This includes the production of documents such as Project Idea Notes (PINs) that are required by the major institutional buyers of CERs. The Service provider will have responsibility for the sale and management of all CERs resulting from the CDM project. Sales of CERs can be made by the Se....

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....equivalent depending on the wish of the Service provider. 6. Jurisdiction This agreement is subject to Raipur jurisdiction. Any dispute arising out of the terms will be subject to the exclusive jurisdiction of the Raipur courts." 5. The Assessing authorities therefore initiated a proceeding raising a demand for recovery of Service tax on reverse charge basis for the consideration paid to the petitioner- Company to the foreign service provider. The Assessing authority confirmed the Service Tax liability along with penalty however on appeal, the Commissioner Appeal set aside the original order holding that CERs are goods sold by the petitioner- Company to the UK Company and therefore, relying on Circular of the Board dated 27.06.2011 it ....

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....n reproduced in earlier part of the order where the UK Company was also obligated to provide services in marketing the CERs to beget favourable terms for the petitioner- Company. As a part of the service, the UK Company also had responsibility for the sale and management of the CERs etc., etc., details of which are part of Clause-3 of the Agreement reproduced earlier. We therefore are not required to interpret the Agreement and arrangement between the two entities as to what they agreed to and what they mean now, when the law has been set in motion, keeping in mind the broad definition given to the words 'Management' or 'Business Consultant'. 9. In the above factual matrix and the law, the view so taken by the Appellate Tri....