Management
- Consultant
CESTAT,
Bangalore Bench
Centre
for Management Development
v.
Commissioner
of Central Excise, Trivandrum
T.K.
Jayaraman, Technical Member
And
Dr. S.L. Peeran, Judicial Member
ST/stay/4
of 2007 IN ST/7 of 2007
STAY
ORDER NO. 242 OF 2007
March 1, 2007
Section 65 of the Finance Act, 1994 - Management consultant - Period from 2000-01 to 2004-05 – Assessee was providing services to improve and develop suitable systems of management for different types of enterprises on financial consideration – Revenue came to a finding that assessee was providing taxable services of management consultant but was not paying tax thereon and, therefore, assessee was required to pre-deposit service tax in excess of Rs. 50 lakh along with like amount by invoking larger period - Assessee pleaded time bar in matter stating that it was sponsored by Kerala Government and had sought a clarification from Finance Ministry regarding its service tax liability and as soon as said clarification was received in revenue’s favour, it voluntary paid service tax and, therefore, there was no intention to evade tax so as to invoke larger period - Whether plea of time bar could be taken into consideration to grant assessee partial waiver and, therefore, it was required to pre-deposit Rs. 15 lakh on which, balance of service tax and equal penalty was to be waived and recovery stayed till disposal of appeal - Held, yes [Para 5]
The assessee-appellant was registered for providing services to improve and develop suitable systems of management for different types of enterprises in the public, joint, co-operative and private sector on financial consideration. On investigation, the revenue found that the assessee was providing taxable services of management consultant but was not paying service tax thereon and, therefore, assessee was required to pre-deposit service tax in excess of Rs. 50 lakh along with like amount of penalty. In the instant appeal, the assessee pleaded time bar in the matter. It stated that it was sponsored by the Kerala Government and had sought a clarification from the Finance Ministry regarding its service tax liability in respect of its said services and as soon as said clarification was given in revenue’s favour, it voluntarily paid the service tax and, therefore, there was no suppression of facts and intention to evade duty so as to invoke larger period.
The appellant had written to the Ministry of Finance seeking clarification in the matter. The appellant was an institution sponsored by the Government of Kerala. The plea of time bar could be taken into consideration to grant the appellant partial waiver. It was required to pre-deposit Rs. 15,00,000. On such deposits, the balance of service tax and penalty was to be waived and recovery stayed till the disposal of the appeal. [Para 5]