Held by ITAT Mumbai in UPS SCS Asia Ltd. (dtd 22-02-2012)
Freight and logistics services (such as transport, procurement, customs clearance, sorting, delivery, warehousing, pick up) do not fall within the ambit of 'managerial, technical or consultancy services' which fall within definition of 'fees for technical services' in Explanation 2 to section 9(1)(vii)
• Word 'managing' is wider in scope than word 'executing'; rather latter is embedded in former and not vice versa; 'managing' encompasses not only simple execution of a work, but also certain other aspects, such as planning execution; thus, 'Managerial services' cannot be interpreted to mean simply executing directions of other for doing a specific task (even though some sort of application of mind is required in each and every aspect of work done); for instance, if goods are to be loaded and some worker is instructed to place goods on a carrier in a particular manner, act of worker in placing goods in prescribed manner, cannot be described as managing the goods because he simply followed direction given to him
• Word "consultancy" means giving some sort of consultation (advice or opinion etc) de hors performance or execution of any work', 'consultancy' excludes actual 'execution'
• As word 'technical' is sandwiched between words 'managerial' and 'consultancy' in Explanation 2, meaning 'technical services' has to be determined from overall meaning of words 'managerial' and 'consultancy' services by applying principle of nosticur a sociis.
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