TaxTMI 
TaxTMI 
2023 (8) TMI 251
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....herein the respondent would identify, select, organize venue, provide university representatives and associate university representative, manage examination delivery, training of university representatives, identification of exam centers and conduct surprise audit, etc.; they have also conducted skills assessments for individuals either through university for non-recruitment but feedback purposes. The respondent claimed that the services rendered by them are educational and not commercial, accordingly availed benefit under Notification No.14/2004-ST dt. 10.09.2004 for the period April 2012 to June 2012 and for the period from 01.7.2012 to 31.3.2013 it falls under 'Auxiliary Education Service' and eligible to the benefit of Notification No. 25/2012 ST dr.20.6.2012. Alleging that the respondent rendered services under 'Management or Business consultant service' during the said period and the said services rendered by them being not related to 'education' for the period 01.4.2012 to 30.6.2012 and "Auxiliary Education Service" for the period 01.7.2012 to 31.3.2013 , therefore, the benefit of exemption under the said notifications being not admissible, service tax to the tune of Rs.1,71....
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....ence the services rendered by them fall within the scope of second part of the definition of 'Management or Business Consultant Service'. It is his contention that once the classification of the services falls under the taxable category of 'Management or Business Consultant Service', the benefit of Notification No.14/2004-St dt. 10.09.2004 is inapplicable as the same is restricted to Business Auxiliary Service (BAS) only. Also, since they do not provide the service on behalf of the University, hence their activities cannot fall under the definition of "Business Auxiliary Service". Besides, the service rendered by the respondent is not relating to education, hence, they are not eligible to the benefit of said Notification 14/2004ST dt.10.9.2004. In support, the learned AR for the Revenue referred to the judgment of the Tribunal in the case of Piem Hotels Ltd. Vs. CCE, Nasik [2016(43) STR 211 (Tri. Mum.) and Karnataka Udyog Mitra Vs. Commissioner of S.T., Bangalore [2015 (38) S.T.R 839 (Tri-Bang)]. 5. The learned Senior Advocate for the respondent has submitted that the services rendered by the respondent are described in the agreement dt. 08.07.2008. He has submitted that analyzing....
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..... Del.)] and submitted that services rendered by the respondent cannot come under the scope of Management or Business Consultant Service but falls under the scope of Business Auxiliary Service and accordingly benefit of notification has been rightly extended by the learned adjudicating authority. 6. Heard both sides and perused the records. The short question involved in the present case is: whether the services rendered by the respondent to Manipal University(MU) and Sikkim Manipal University(SMU) as per agreement dated 08.7.2008 in conducting examinations for selection of candidates for admission to various courses and other evaluating examinations fall under the scope of "Management or Business consultant service" and the respondent is not eligible to the benefit of exemption Notification No.14/2004 ST dt.10.9.2004. 7. Section 65(65) of Finance Act,1994 defines "Management or Business consultant service", and at the relevant time it read as: "(65) 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....
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.... so all activities their selection, training and deployment will be the responsibility of MeritTrac. All money for centre, UR and AUR will be disbursed by MeritTrac. 9.12. In this connection, the assessees have submitted that: i) They are involved in the actual conduct of exams, supervision /administration of tests, evaluation of scores etc on behalf of the University. (ii) They do not provide any advice, consultancy or technical assistance in relation to the management function of the University. (iii) The service provided by them is executory in nature and not advisory in nature and therefore they cannot be said to be providing "Management or Business Consultancy services" which are purely advisory in nature. 9.13. They have relied on the following decisions in their support: 1. Decision of CESTAT, NEW DELHI BENCH in the case of Basti Sugar Mills Co. Ltd. u. Commissioner of Central Excise, Allahabad [2007 10 STT 107 (NEW DELHI - CESTAT) wherein the Tribunal held as follows:- "'Management Consultant' means 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....
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....t consultant makes it clear that what is envisaged from a consultant is advisory service and not the actual performance of the management function. Any other meaning to the term management consultant would render the entries relating to many other services which are rendered in connection with the management of any organization such as "manpower recruitment or supply agency" service, "business auxiliary" service as redundant. In the common parlance also, the role of a consultant is to render advice, consultancy and technical assistance in the matters on which he has the expertise. However, the decision on acceptance or otherwise of such advice is left to the management and the consultant does not have right to impose his advice. In such a situation, it ceases to be an advice and becomes an order or direction. 4. Decision of CESTAT, Mumbai Bench in the case of Suzlon Windfarm Services Ltd. Vs. CCE, Pune-II [2014 (46) taxmann.com 308 (Mumbai - CESTAT)] wherein it was held that : The client of the appellant herein, M/s. Suzlon Energy Ltd., are manufacturers of wind operated windmill generators and systems. In the sales agreements entered into by them with their customers, there is....
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....his case cannot be said to be providing Management or Consultancy Service and therefore the SCN is not sustainable for the period from 1/4/2012 to 30/6/2012 also. 9.16. I also find that the assessee have made an alternative plea to the effect that they are eligible for benefit of exemption under Notification No.14/2004-St dt. 20/09/2003. The said notification reads as follows:- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable service provided to a client by a commercial concern in relation to the business auxiliary service, insofar as it relates to, - (a) procurement of goods or services, which are inputs for the client; (b) production of goods on behalf of the client; (c) provision of service on behalf of the client; or (d) a service incidental or auxiliary to any activity specified in (a) to (c) above. from the whole of the service tax leviable thereon under section 66 of the said Finance Act : Provided that nothing in this notification shall apply to, - (i) a factory registered under or g....
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....ondent has rendered assistance in carrying out the examinations under the said agreement but in fact the exams are conducted by the university itself; hence the services fall within the scope of 'Management or Business Consultant Services'. In our opinion the stand of the department is devoid of merit. A careful reading of the scope of the service mentioned in the said agreement, referred to and analysed by the learned Commissioner in the impugned Order, clearly indicates that the respondents being experts in the field, approached by the Universities to carry out the exams for the university, to identify the talented candidates for enrolment and other purposes to various courses and the methodology/procedure for the execution of the said objective narrated in the form of agreement. The respondent's role is to execute the conduct of exams by providing necessary manpower, expertise, infrastructure etc. as stipulated in the said agreement. The said service thus cannot be construed as rendering any management or business consultancy/advice to the universities by the Appellant without its involvement in the execution of the conduct of the examination. Further, we find that the learned C....