CCE Vs. M.P. STATE DAIRY COOPERATIVE FEDERATION

JUDGEMENT

(1.) REVENUE being aggrieved by the order passed by the learned Commissioner holding that no service tax can be imposed on the charges recovered from the milk Union by the appellant Federation under the category of Management Consultancy Services, came in appeal to Tribunal. Revenue's grievance is that the respondent Federation gets some charges for providing consultancy to various Milk Unions. Accordingly, the aggregate of such charge giving rise to value of the taxable service received by the respondents shall be taxable under the category of Management Consultancy Services. Also Revenue's contention is that the respondent satisfies the requirement of definition given in Section 65(65) of the Finance Act, 1994 in respect of Management Consultancy Service.

(2.) SHRI Arun Mehrotra, Chartered Accountant appearing for the Respondent submits that the learned Commissioner (Appeals) has correctly understood the role of the Respondents and held that the Federation is a statutory body providing administrative guidance and assistance to Milk Unions of State of Madhya Pradesh as a statutory obligation without acting as a commercial concern. Therefore, the first appellate order should not be disturbed.

(3.) WE have noticed that the Commissioner (Appeals) in para 10 of the order has clearly brought out what is the role of the Respondent Federation. He has noticed that the respondent is a supervising functionary and guides the Milk Unions of the State of Madhya Pradesh for their efficient operation. It issues various orders and instructions and answers Vidhan Sabha questions as well as clarification in regard to Milk Unions. Accordingly, that authority was of the view that the respondent cannot be held to be a service provider.