Tax Appeals Partially Succeed: Management Consultancy Services Demand Dropped, CENVAT Credit and Service Tax Liabilities Reconsidered

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....CESTAT partially allowed appeals filed by appellant and department. The tribunal upheld dropping of management consultancy service demand of Rs. 3,66,07,637 and set aside demands related to CENVAT credit of Rs. 11,92,94,464, corporate guarantee of Rs. 10,69,70,856, and service tax liability of Rs. 6,75,40,376. The case was remanded to lower authorities to reconcile financial records and verify tax payments. Penalties under Section 77 were set aside due to absence of mens rea, and the appellant's prior tax payments were considered. The tribunal found services fell under Business Auxiliary Services and were effectively export of services, thus rejecting revenue's contentions.....