TaxTMI 
TaxTMI 
2026 (4) TMI 755
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....BANGALORE - TMI<br>CESTAT BANGALORE - AT (Judgement / Order / Decisions)<br>Dated:- 27-2-2026<br>Service Tax Appeal No. 21334, 21335, 21336, 21337, 21338, 21339, 21340, 21341, 21342, 21343, 21344, 21345, 21346, 21347, 21348 of 2017 Others - Final Order No. 20321-20377/2026<br>Service Tax<br>With Service Tax Appeal No. 20190, 20191, 20192 of 2019, Service Tax Appeal No. 20914, 20915, 20916, 20917 of 2019, Service Tax Appeal No. 20953, 20954, 20955, 20956, 20957, 20958, 20959, 20960, 20961, 20962, 20963, 20964, 20965, 20966, 20967, 20968, 20969, 20970 of 2019, Service Tax Appeal No. 20297 of 2022, Service Tax Appeal No. 20433 of 2022, Service Tax Appeal No. 20533, 20534, 20535, 20536, 20537, 20538, 20539, 20540, 20541, 20542, 20543 of 2022 ....
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....("Contributors/ Beneficiaries"); the Trust Deed executed for this purpose, lays down the objectives for which the Assessees‟ Trusts are set up, its establishment, management and other allied matters; the Trustee receives remuneration in the form of Trusteeship fees for services rendered by it to the Assessees. To ensure that the Assessees receives relevant professional and experienced advice, the Trustee appoints an Investment Manager or Asset Manager to manage the assets of the Assessees. The terms for appointment of the Investment Manager/ Asset Manager are contained in the "Investment Management Agreement" ("IMA"). The Investment Manager is responsible for managing the assets/ investments of the Assessees and receives remuneration ....
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....'juridical person' under the said Act, therefore, levy against the assessees cannot be sustained. 5. Learned Special Counsel for the Revenue reiterated the findings of the learned Commissioner /Commissioner (Appeals). 6. Heard both sides and perused the records. This Tribunal in the case of M/s. ICICI Econet Internet & Technology Fund v. Commr. of Central Tax, Bangalore North: 2021 (51) G.S.T.L. 36 (Tri. -Bang.) in a similar circumstance, analysing the levy and liability of service tax on Trust decided the issue against the assessee. Aggrieved by the said order, the assessee had approached the Hon'ble High Court which after framing issues, decided as follows: "11. We have carefully considered rival contentions and perused the....
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....mphasis Supplied) 13. In this case, there is no dispute with regard to rate of duty in this case. The question is whether assessee is liable to pay the duty. Therefore, in our considered view, appeal is maintainable before this Court. Re: Question No.(i) 14. It was argued by Shri. Shivadass that the Act does not recognize 'trust' as a person and assessee cannot be considered as a juridical person for the purpose of charging service tax. On the other hand, Shri.Neeralgi's contention is that the trust is registered under the SEBI Act and it is treated as a 'juridical person' under the said Act; and therefore, the trust is a juridical person and is liable to pay service tax. 15. The defin....
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....: * Investment mangers contribution is Rs. 1 Crore; * Capital from 'A', 'B' and 'C' Units is Rs. 100 Crores. Cumulatively, 100+1= 101 Crore; * if the total income of the fund for 10 years is Rs. 80 Crores; * the gross fund available with the Trust would be 101+80=181 Crores; * the operating expenses works out to about Rs.5 Crores; * the net distributable fund would be 181-5=176 Crores; * preferred rate of return payable to Class 'A' and 'B' contributor is 6% which works out to Rs. 60 Crores; * return of capital to Class 'C' holder will be its contribution namely Rs. 1 Crore; * in the result, the total fund availab....
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....can be no service to self. Therefore the doctrine of mutuality must apply in the instant case. 24. Accordingly, we answer the third question as affirmative and in favour of the assessee. Hence the following: ORDER (i) Appeals are allowed. (ii) Order dated July 07, 2021 in Final Order No. 20372-20402/2021 passed by CESTAT is set-aside. (iii) Questions of law are answered in favour of the assessee against the Revenue. 7. Revenue filed Special Leave Petition (SLP) against the said judgment of the Hon'ble High Court before the Hon'ble Supreme Court which was dismissed reported as Commissioner of Central Tax, Bangalore vs. India Advantage Fund: (2024) 23 Centax 150 (S.C.), therefore, the judgment o....