ORDER
S.L. Peeran, Member (J)
1. For the purpose of hearing the appeal, the appellants are required to pre-deposit Rs. 8,32,391/- and like sum as penalty besides penalty under various sections of Service Tax Act.
2. The learned Chartered Accountant submits that for the Management Services, they have received payment from abroad, which is not chargeable to Service Tax. She submits that the initial demands were very huge, however, the Commissioner, has accepted their pleas pertaining to some of the charges which are not covered under the Service Tax Act. She submits that all the services are provided for South Asian countries and payments were made in dollars and it cannot be brought within the category of Management Consultancy.
3. The learned SDR points out to the reply to the Show Cause Notice where this plea has not been taken. The learned CA refers to the Agreement. On perusal of the Agreement, we are not in a position to find out as to whether the services are provided in India or abroad. Therefore, this is a contestable issue.
4. The learned CA relies on the Stay Order given by this Bench in Precot Mills Ltd. v. CCE, Tirupathi charges received for technical guidance was prima facie considered to be not covered under the Act. The Mumbai Bench, in the case of Glaxo Smithkline Pharmaceuticals Ltd. v. CCE. Mumbai-IV have held that services rendered towards publicity, freight, travelling, power and fuel, rent and misc. expenses are not covered under ‘Management Consultancy Services’.
5. On our perusal, we find that the services for which they are taxed are not mentioned in the Mumbai Bench’s order. On our total consideration, we are of the considered opinion that the appellants should be put to terms. They should pre-deposit Rs. 3,00,000/- (Rupees three lakhs only) within a period of two months. On such deposits, the balance of the amount stands waived. There shall be no recovery if the amounts are deposited. Failure to comply with this order will entail dismissal of the appeal. Call on to report compliance on 27th February, 2006.
(Pronounced and dictated in open Court)