KONKAN SYNTHETIC FIBRES Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE appellant M/s. Konkan Synthetic Fibres (Processed Yarn Unit - Proprietor of Century Enka Ltd.) are in appeal against the order of Commissioner (Appeals) which concurred with the order -in -original confirming Service Tax demand of Rs. 9,15,892/ - along with interest and penalties under Sections 76, 77 & 78 of the Finance Act, 1994. The facts are that M/s. Century Enka Ltd. entered into an Agreement with M/s. Centak Chemicals Ltd. for the period April 1999 to March 2004 for providing General Support services, Operational services, Personnel services and Secretarial services to the latter. From 1 -4 -2004, on the expiry of the first agreement, they entered into two separate agreements for operational facilities and personal facilities to be provided to M/s. Centak Chemicals Ltd. The case of Revenue is that all these services fall within the scope of Management Consultancy service and therefore, the appellant is liable to pay Service Tax on the amounts received for provision of such services to M/s. Centak Chemicals Ltd.

(2.) HEARD both sides.

(3.) THE ld. AR highlighted the charges in the show cause notice stating that as per Article III of the Agreement under the heading Cooperation and Consultation, it is stated that the two entities will co -ordinate and consult with each other for efficient and safe use of the facilities. He referred to the definition of Management Consultancy, and stated that any service provided directly or indirectly, in connection with the management of any organization is wide enough to include the activities of the appellant under this definition.