2026 (4) TMI 949

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....thority demanded the service tax along with the applicable interest and also imposed penalty. 2. The brief, fact of the case is that the shareholding of two shareholders viz- the appellants were sold to a foreign based company and a payment was also made to the consultant for the services of sale of company by the two appellants/shareholders towards the service of sale of their shares in company and ultimate transfer from Indian company to fundamental company. 3. The Learned Advocate has mainly contested that demand of tax on the service of Merger & Acquisition under the category of Management or Business Consultancy service is wrong as the said activity would clearly fall under another taxable service of Banking and Financial Service....

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....es Pvt Ltd., Vs CCE, Mangalore [2018 (12) G.S.T.L. 46 (Tri-Bang) 4. He has also contested that the confirmation of demand based on CBEC Order dated 27.06.2001 is also wrong as the Hon'ble High Court discussed this order, but held that the service of Merger & Acquisition does not fall under management of organisation and taxable and instead is covered under Banking and other Financial Services with effect from 16.07.2001. In spite of that there is no provision to collect Service Tax from a company from its Director in the Finance Act, 1994 he has relied on the following judgments: (a) L.D. Industries Vs Commissioner of Central Excise, Pune, [2003 (157) ELT 459 (Tri-Delhi)] (b) Ved Kapoor Vs Union of India, [2014 (299) EL....

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....e said activity of acquisition and merger would be covered under the category of Management Consultancy Service before 16.07.2011 and thereafter under Business and Other Financial Services. 8. He has also relied on the judgment of Co-ordinate Bench in the case of Vimal Stocks Pvt Ltd., Vs CST, Ahmedabad [2024 (16) Centax 61 (Tri - Ahmd)], wherein, the Tribunal examined whether the service of providing market related advice based on technical analysis of stocks could be covered under Business and Financial Services, it was, inter alia, held that in order to fall under the category of Business and Financial Services, the company who is providing the service has to be Business and Financial Institutions. He has also relied on the judgment o....

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....indra Capital Company Ltd., DSP Merill Lynch Ltd., Vs CST, Mumbai, Triumph International Finance Ltd., Vs CST, Mumbai and CLSA India Ltd., Vs CST, Mumbai, supra, is relevant, wherein, it has been held that the merger and acquisition advisory services are classifiable under Banking and Financial Services. 14. Further, it is an admitted position that such services were specifically brought out under the taxable category of Business and other Financial Services only with effect from 16.07.2001 and therefore classification under Management Consultancy service for the relevant period is not sustainable. 15. The demand has been raised under Section 66A of the Finance Act 1994 treating the services as imported of service. However, from the f....