TaxTMI 
TaxTMI 
2019 (5) TMI 266
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....including Management Consultation Fee of US$ 30 lakhs and Representation Fees of US$ 20 lakhs per annum. The amount paid by appellants towards Representation Fee was also shown in the financial statement as Management Consultancy Fees. Though, appellants had discharged service tax on the Management Consultancy Fees of US$ 30 lakhs, they had not discharged service tax on US$ 20 lakhs, which is paid to M/s. Vedanta as Representation Fees. It appeared that the agreement dated 29.03.2005 entered into between the appellants and M/s. Vedanta, whereby was appointed to represent appellant in its dealings with lawyers, bankers, consultants of revenue and other authorities to extend its overseas operations and hereby augment its financial resources. It is also stated that M/s. Vedanta is to provide technical and commercial materials to appellant to enable the appellants to promote/raise funds overseas. Thus department was of the view that though the amount of US$ 20 lakhs is shown as Representation Fees, it is actually Management Consultancy Fees and, therefore, the appellants are liable to pay service tax on this portion also under Management Consultancy Services. 2. After due process of....
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....ice. The adjudicating authority, however, passed the impugned order confirming demand of service tax of Rs. 4,41,40,399/- for the period 2006-07 to 2009-10 under section 73 (2); levying interest at the approximate rate under section 75 of the Finance Act, 1994; and imposing penalty. 3.4 The preamble to the Representative Office agreement would show that M/s.Vedanta Resources Plc. was appointed to represent the appellant in its dealings with lawyers, bankers, consultants, revenue and other authorities. 3.5 The expression 'Management Consultant' is defined in the Finance Act 1994 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." 3.6 It is clear from the aforesaid definition that only serv....
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....ce in respect of marketing etc., for which a separate consideration was being paid on which the appellant had discharged applicable service tax under the head Management Consultancy Services. 3.10 Without prejudice, appellant submitted that the dispute in the present case is completely revenue neutral. It is also settled law that the extended period of limitation cannot be invoked in cases of revenue neutrality. Reliance in this regards is placed on the following amongst other decisions - • CCE Vs. M/s. Coca-cola India Pvt Ltd. - 2007 (213) ELT 490 (SC). • M/s. Jay Yushin Ltd. Vs. CCE - 2000 (119) ELT 718 (Tri-LB). • M/s. Reliance Industries Ltd. Vs. CCE - 2016 (44) STR 82 (Tri-Mum). 3.11 Without prejudice to the above, it is agreed that there is no reason or basis which had been assigned in the show-cause notice for seeking to invoke proviso to Section 73(1) i.e., larger period of limitation. The records of appellant-Company had been consistently audited by the department. However, no objection whatsoever in this regard was raised in the course of such audits. Accordingly, no suppression can be alleged on part of the appellant so as to ....
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.... "Considering the size of its business, M/s. Sterlite Industries Ltd., requires a presence in the United Kingdom to represent it in its dealings with lawyers, bankers, consultants and revenue and other authorities. In the past, M/s. Sterlite Industries Ltd., had a Chairman's office in the United Kingdom, which fulfilled these needs. However, the Chairman's office in the United Kingdom has been discontinued and M/s. Sterlite Industries Ltd., is seeking a presence overseas to expand its business operations, augment its financial resources and represent it before consultants and legal authorities. M/s. Vdeanta has indicated that it would be willing to act as a representative for M/s. Sterlite Industries Ltd. The parties have agree that M/s. Vedanta shall render such services to M/s. Sterlite Industries Ltd., on the terms and conditions hereinafter mentioned." 7. Clause 2 of the agreement mentions about the fees that has to be paid by appellant to M/s. Vdeanta. The fees is the consideration for performing its duties as a Representative Office. The fees is fixed as US$20 lakhs. Thus, from the agreement, it is very much clear that the intention of the parties is....