Call Option Fee not liable for service tax, being derivative under SCRA, not service as per Finance Act. SC discussed it in Vodafone case.

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....Detailed legal analysis regarding levy of service tax on 'Call Option Fee' during 2007-08 to 2013-14. Held that 'Call Option' is a derivative or right in securities under Securities Contracts (Regulation) Act, 1956 (SCRA), hence a transaction in goods not subject to service tax under Finance Act, 1994. Supreme Court in Vodafone case discussed 'Call Options' without indicating illegality. Consideration for Call Option, not for ancillary requirement of holding shares. Call options fall under activities excluded from 'service' definition u/s 65B(44). Extended period of limitation wrongly invoked without evidence of intent to evade tax. Penalty wrongly imposed as no deliberate deception to evade duty. Order set aside, appeal allowed.....