2018 (11) TMI 813 – CESTAT CHENNAI – TMI – CENVAT Credit – input services – Clearing & Forwarding domestic supply services – travel agents service – professional (management consultancy) service – Held that:- The category of service provided by McKinsey & Co. is management consultancy service. Though it is termed that professional fees is collected by the service provider, it is very much clear that these are services in relation to after-market acceleration, which indicates that these are services for market analysis. The said services fall within the inclusive part of the definition – the disallowance of credit on such services is not justified.
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The impugned order requires to be modified to the extent of allowing the credit in resp
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hat the appellants are not eligible for input tax credit on these services. Show cause notice was issued proposing to demand wrongly availed credit along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. counsel Shri M. Kannan submitted that the appellant is not pressing the issue with regard to C&F services for domestic supplies as well as the issue of travel agents service. He submitted that an amount of ₹ 1,75,495/- is involved with respect to professional services paid to M/s. McKinsey & Co. for the market analysis and re
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to C&F services for domestic supply of goods as well as the credit disallowed on travel agents service. The demand in respect of these two services are therefore upheld. 5.1 The ld. counsel has strongly argued with regard to credit availed on professional (management consultancy) service for market analysis. The invoice showing the amount paid to M/s. McKinsey & Co. by the appellant is produced by the counsel for appellant. From such invoice, it is seen that the category of service provided by McKinsey & Co. is management consultancy service. Though it is termed that professional fees is collected by the service provider, it is very much clear that these are services in relation to after-market acceleration, which indicates that
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