2018 (11) TMI 1474 - HC - Service Tax

Nature of activity of chit fund business - cash management / fund management - whether classifiable under the category of banking and other financial services - Held that - The issue stands squarely covered by the decision in the case of UNION OF INDIA AND ORS. VERSUS M/S. MARGADARSHI CHIT FUNDS (P) LTD. ETC 2017 (7) TMI 224 - SUPREME COURT OF INDIA , where it was held that the petitioner is not liable to pay service tax before 14.05.2015 - petition allowed.

Summary

The High Court of Kerala ruled in favor of the petitioner, a Non-Banking Financial Company, stating that they are not liable to pay service tax on chit-fund business for the period from 2007-2012. The court referred to previous judgments and set aside the proceedings against the petitioner. The authorities can consider the issue for the period from 14.05.2015 onwards.