TaxTMI 
TaxTMI 
TaxTMI 
2013 (7) TMI 366
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....achs Ltd. They have a research department which conducts equity research and prepare research reports on the financials of the companies listed on the bourses and the stock market performance of equity shares of such companies. In the Profit and Loss account for the years 99-2000 to 2002-03, they had shown "Fee income/Research Fees received amounting to Rs. 6,51,79,558/- on which no service tax had been paid by the appellant company. The department was of the view that the activity pertaining to research undertaken by the appellant would merit classification under the category of "Market Research Services" and the appellant is liable to pay service tax thereon. Accordingly a show cause notice dated 3/3/03 was issued to the appellant demandi....
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....e CBEC in the context of distribution of cine films. The amounts sought to be shared are in the nature of maintenance, electricity, telephone, stationery, postage, staff costs, etc. which are clearly in the nature of expenses incurred for the equity research department/facility. c) There is no service provider-client relationship between the appellant and KMCC. KMCC is an affiliate company of the appellant under common shareholding of the Kotak Mahindra Group. d) Reimbursement of expenses for research facility are at actual and therefore, not liable to service tax. e) The demand is barred by limitation as the appellant had vide letters dated 25-3-2004 and 7-9-2004 had submitted all the details to th....
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....ities is as per the details given in the annexure to the agreement. From the above agreement it is evident that the appellant has been providing research support to KMCC and the consideration for the said service is by way of sharing of costs. 5.2 Allegation in the show cause notice is that the appellant has shown an income during the impugned period (October 2000 to March, 2003) in the P/L account Rs.6,51,79,558/- under the head "Fee income/Research Fees" received. However during the said period, as per the evidence produced by the appellant before the lower appellate authority, the share of revenue towards IPO/Placement of securities etc. is only Rs.3,75,000/-. Sharing of expenses for common usage facilities cannot obviously come under ....
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....ised that the service provided does not come under the category of 'Market Research Services' as they do not pertain to any product, service or utility. It is not in dispute that the appellant conducted equity research and prepared reports on the financials of the companies listed in the stock exchanges and the stock market performance of equity shares of such companies. Equities definitely come under the categories of products and considered as goods under the Sale of Goods Act, 1934. Therefore, research on equity is a product research. During the relevant time, the term Market Research Agency was defined in section 65(69) of the Finance Act, 1994 as "any commercial concern engaged in conducting market research in any manner, in relation t....