2008 (2) TMI 279

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....onsultancy Services' and 'Repair and Maintenance'. They were paying Service Tax on the services provided by them. The Revenue Intelligence carried out search and found from the Balance Sheet that the assessee did not pay Service Tax on charges realised from the customers and accounted for under the head "Reimbursements" in their Balance Sheet. Hence, differential Service Tax was demanded for the period from 1-4-2001 to 31-3-2006 in terms of the Show Cause Notice dated 8-5-2006. 2. The appellant's defence is that the reimbursement pertains to rent of the godown, salary of their employees and incentives given to such employees. However, the Revenue has considered these payments also to be covered under the category of Manag....

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....eimbursements - Para 4.5   7. Basti Sugar Mills Co. Ltd. v. CCE, Allahabad - 2007 (7) S.T.R. 431 (Tri.-Del.) Held, the definition of 'Management Consultant' makes it clear that what was envisaged from a consultant is advisory service and not actual performance of management function and that an ocean separates a Manager from a Management Consultant, a performer from an advisor or a coach. 8. Jindal Vijayanagar Steel Ltd. v. CCE, Belgaum - 2005 (192) E.L.T. 415 (Tri.-Bang.) Held that 'extended period' was not invokable especially as fact of giving of advance was declared in Balance Sheet of the Company. 9.   Kirloskar Oil Engines Ltd. v. CCE, Nasik - 2004 (178) E.L.T. 998 (Tri.-Mumbai) ....

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....des argued at length and have reiterated their points in terms of the pleas raised by the respective sides in their appeal memos and the impugned order. We have carefully considered the submissions. We notice that the order passed by the Commissioner is not a speaking order. He does not refer to the judgments, which deal on this point both on merits and on limitation. He does not give any reasons as to why the ratio of these judgments are not applicable. Neither he discusses these case-laws except to say that they are not applicable. Prima facie, in the cited judgments on merits, a view has been expressed that the appellants are not required to pay Service Tax on these ingredients like rent, salary of employees, etc. on which service tax is....