2018 (10) TMI 902

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....And W.P.(C) Nos. 8774, 21909, 26203 of 2014, 10983, 11008, 11018, 12972, 13686, 20071, 22291 of 201518700/2016, 6641/2017, 13280/2017 - -<br>Service Tax<br>MR K. VINOD CHANDRAN AND ASHOK MENON, JJ. For The Appellant(S) : ADV. SRI.K.S.BHARATHAN For The Respondent (S) : ADV. SRI.N.NAGARESH, ASSISTANT SOLICITOR GENERAL ADV.SRI.THOMAS MATHEW NELLIMOOTTIL, S.C ADV. SRI.P.R.SREJITH, S.C&nbsp; AND ADV.SRI.JACOB VARGHESE JUDGMENT Vinod Chandran, J. The issue raised in all these Appeals/Writ Petitions are with respect to the liability of chit transactions, to service tax as arising from the Finance Act, 1994. The issue arises during three periods, in so far as the amendments made to the Finance Act, 1994. They are, pre-2012, between 2....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the liability negatived by the Honourable Supreme Court in AIR 2017 SC 3730. The decision of the Kerala High Court was specifically overruled. Later, some writ petitions filed were allowed, following the decision of the Honourable Supreme Court. One such judgment is challenged by the Revenue contending that the Apex Court has not considered the amendment of 2012. In such circumstances, the Writ Appeals/Writ Petitions have to be adjudicated based on the finding of the Honourable Supreme Court. 3. The issue briefly stated is, prior to 2007, there was definition of various &#39;Services&#39; exigible to tax under Finance Act, 1994. Section 65(12)(v) defined "banking and other financial services", which was as follows:- (a) the fol....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....clared service, but shall not include- (a) an activity which constitutes merely,- (i) a transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or (ii) such transfer, delivery or supply of any goods which is deemed to be a sale within the meaning of clause (29A) of Article 366 of the Constitution; or (iii) a transaction in money or actionable claim; xx xx" The negative list is available under Section 66D. A transaction in money or actionable claim having been specifically excluded, the contention was that chit transaction would not come under the definition of &#39;service&#39; as available in Section 65B(44). The issue agitated by the Revenue is as to wh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cy or denomination, to another form, currency or denomination for which a separate consideration is charged; (ii) any activity carried out, for a consideration, in relation to, or for facilitation of, a transaction in money or actionable claim, including the activity carried out - (a) by a lottery distributor or selling agent in relation to promotion, marketing, organizing, selling of lottery or facilitating in organizing lottery of any kind, in any other manner; (b) by a foreman of chit fund for conducting or organizing a chit in any manner." Herein, the transactions "by a foreman of chit fund for conducting or organizing a chit in any manner" was specifically excluded from the definition of transaction in mon....