2015 (1) TMI 772 - SCH - Service Tax

Correctness of Circular No. 96/7/07-ST - banking and financial services - Chit fund business - Supreme Court dismissed the appeal filed by Revenue against the decision of High Court 2008 (7) TMI 227 - HIGH COURT ANDHRA PRADESH , wherein High Court held that Revenue is not correct to treat the chit fund business to fall within the ambit of asset management as there is subtle difference between banking and financial services as defined under the Act and the services of the chit transactions - further revenue cannot levy a tax for the first time on a totally new arena by issuance of a circular - as the Finance Act is not properly amended to bring within its fold chit transactions, the demand is unsustainable.

Summary

The Supreme Court of India dismissed the Special Leave Petition in the case. The judges were Anil R. Dave and N.V. Ramana. The Appellant was represented by P.S. Narsimha, ASG, and others, while the Respondent was represented by S. Ganesh, Sr. Adv, and others.