2014 (1) TMI 1003

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...., Superintendent (AR) For the Respondent : Shri Sushant Murthy, Adv. JUDGEMENT Per: S S Kang: Heard both sides. 2. Revenue filed this appeal against the order passed by the Commissioner of Service Tax, Mumbai where the Commissioner of Central Excise held that Reserve Bank of India is not a body corporate. Therefore, the respondent cannot be said to have subscribed to the securities ....

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....re the respondents are liable to pay service tax in respect of government securities. 4. We find that Board now issued clarification vide Circular No. 126/8/2010-S.T. dated 10/08/2010 that government securities not the securities of body corporate relevant portion of the Board Circular is reproduced below: "Government of India Ministry of Finance (Department of Revenue) Central Board o....

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....ch reads as follows:    "underwriting means an agreement with or without conditions to subscribe to the securities of a body corporate when the existing shareholders of such body corporate or the public do not subscribe to the securities offered to them."    3. The term "underwriter" as in section 65(116) of the Finance Act, 1994, has been borrowed from rule 2 (f) of the ....

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.... risk. Reserve Bank of India only manages the issue and also auction of Government Securities on behalf of the Government of India. In effect, Primary Dealers registered with the RBI (as opposed to registration with the Securities Exchange Board of India) deal in Government Securities, issued by the RBI on behalf of the Government of India, as a part of the central Government's market borrowing pr....