SOBHA DEVELOPERS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THIS application seeks waiver of pre -deposit and stay of recovery of an amount of Rs. 11,63,695/ - relate to services received by the Appellant towards the services rendered to it by M/s. Dorsey & Whitney, LLP based in U.K. The Appellant had paid the service provider charges for the services rendered under Invoice dt. 25 -8 -2006 and dt. 15 -11 -2006.

(2.) Service received were classifiable under 'management consultancy' as defined under Sub -clause (r) of Clause of 105 of Section 65 of the Finance Act, 1994(the Act). The Appellants had received the following services in connection with its 'initial public offering' outside India.

(3.) LD . Counsel submits that from the above definition of management consultancy, legal services of the type received by the Appellant herein would not constitute management consultancy services. He also relies on the clarification issued by the Service Tax Commissionerate, Delhi dt. 26 -11 -2007 wherein, the CBEC had clarified that the services by a lawyer in his professional capacity relating to law were not taxable under the services. As per this communication, as regards services provided by lawyers in their professional capacity relating to law, the Hon'ble Finance Minister had already clarified the position on the floor of the Parliament. It was pertinent to note that the Empowered Committee of State Finance Ministers had included legal service in the list of services which were not being taxed at that time. Ld. Counsel submits that the proposal to bring legal service under the tax net was implemented vide the Finance Act, 2009 w.e.f. 7 -7 -2009.