2014 (3) TMI 228

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....dered services relating to marketing of mutual funds. During the period July, 2003 to September, 2004 the service tax liability on the services rendered was assessed by the appellant himself at Rs. 39,65,714/- and paid to the department. Thereafter on 1-4-2005 the appellant preferred a refund claim on the ground that he was not required to pay service tax in view of the Notification No. 13/2003-S.T., dated 20-6-2003 which granted exemption on services rendered by a Commission Agent in respect of "Business Auxiliary Services". The department issued a show-cause notice dated 24-6-2005 and thereafter, an order was passed by the Jurisdictional Deputy Commissioner rejecting the refund on the ground that the appellant is not eligible for the bene....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....urchase of agricultural produce and since the appellant is not rendering any service in regard to agricultural produce, for the period 9-7-2004 onwards, the appellant is not eligible for exemption. 3.1 The ld. Additional Commissioner (AR) also submits that as per the clarification issued by the C.B.E. & C. vide Circular No. 66/15/2003-S.T., dated 5-11-2003, services rendered by distributors of mutual funds are not eligible for benefit of Notification No. 13/2003-S.T. as they are rendering services in relation to promotion or marketing of service and not promotion or marketing of goods. However, the Ld. AR fairly concedes that this Circular has been set aside by the Hon'ble Andhra Pradesh High Court in the case of Karvy Securities Lt....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... authority. The lower appellate authority has come to the conclusion that the appellant is eligible for benefit of Notification No. 13/2003-S.T. as mutual funds are goods as defined in Section 65(50) of the Finance Act. However, the said order does not take into account the amendment made to the said notification vide Notification No. 8/2004, dated 9-7-2004. Vide Notification No. 8/2004, the scope of exemption has been restricted to the services rendered by a Commission Agent in relation to the sale or purchase of agricultural produce. In other words, in respect of Commission Agent dealing with mutual funds, the benefit of Notification No. 13/2003 would apply only for the period prior to 9-7-2004. Since in the present case, the refund perta....