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Management consultant — Organising short-term courses for officers on topics related to Forestry Management, Environment Management System, Social Forestry, Water Resources Management, etc. — Held, it merely improved skills and knowledge level of officers attending courses — It could not be called rendering advice, directly or indirectly, in connection with management — In that view, it could not be made liable to service tax as Management Consultancy Service.
Facts:
The appellant an Institute under the Ministry of Environment and Forest, Government of India is a premier institute for education research, training and consultancy in the area of Forest Management. The appellant also conducted classes for various degree and diploma courses and organised short-term courses in various subjects relating to Forest Management, Social Forestry, Water Shed Management, Environment Management System, etc. for which no degree or diploma was given. The Department was of the view that this activity is covered under ‘Management Consultancy Service’ and the same would attract service tax. According to the Department, during the period from 1999-02 to 2002-04, the appellant provided services of management consultancy for various organisations for which service tax was not paid. Service tax was demanded and penalty was imposed. The show-cause notice was adjudicated. The order reviewed by the Commissioner confirmed the demand of some amount as additional service tax liability along with interest and penalty.
Held:
It was held that the activity of organising the short-term courses is not covered by the definition of ‘Management Consultancy Service’ as the appellant does not conceptualise, device, develop, modify, rectify or upgrade any working system of any organisation and that the shortterm courses organised meant for senior officers of Indian Forest Service, National Afforestation and Ecodevelopment Board, Department of Science and Technology, etc. are not rendering any consultancy, advice or technical assistance to any organisation in connection with management of that organisation and hence the orders upholding the service tax demand and penalty was held not sustainable.
