https://www.taxtmi.com/caselaws?id=756240 CESTAT New Delhi held that call option fees cannot be subject to service tax as call options constitute derivatives and rights in securities, which are specifically defined as securities under the Securities Contracts (Regulation) Act, 1956. Securities are considered goods, not services, making service tax imposition beyond the Finance Act, 1994's scope. The tribunal referenced the SC's Vodafone decision, noting no indication that call options were illegal contracts. The department wrongly invoked extended limitation period without establishing intent to evade tax or demonstrating deliberate deception. Penalty was improperly imposed as the appellant held bonafide belief that call option grants weren't service activities. The demand was set aside and appeal allowed. en-us Fri, 19 Jul 2024 00:00:00 +0530 Tue, 30 Jul 2024 11:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756240 CESTAT New Delhi held that call option fees cannot be subject to service tax as call options constitute derivatives and rights in securities, which are specifically defined as securities under the Securities Contracts (Regulation) Act, 1956. Securities are considered goods, not services, making service tax imposition beyond the Finance Act, 1994's scope. The tribunal referenced the SC's Vodafone decision, noting no indication that call options were illegal contracts. The department wrongly invoked extended limitation period without establishing intent to evade tax or demonstrating deliberate deception. Penalty was improperly imposed as the appellant held bonafide belief that call option grants weren't service activities. The demand was set aside and appeal allowed. Case-Laws Service Tax Fri, 19 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756240