9911796707
TMI Blog2012 (7) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... under the category of GTA as service recipient. On verification by the Audit of their Annual Report for the period from 2003-04 to 2005-06, it was found that they were receiving commission and discount. The department made a case against the applicant for not paying the service tax on business auxiliary services. In respect of the said commission and discount received, the applicant's plea was that they were registered as sub-broker of mutual fund distributors and that the said income was on account of distribution of mutual fund on which service tax liability had been discharged by the authorized body. However, they could not produce any evidence in support of their plea. Accordingly, the Department confirmed the demand of service tax and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. 13/2003-S.T., the conclusion is irresistible that the respondent were not liable to pay any service tax for service rendered as commission agent in connection with sale and purchase of units of mutual fund schemes during the relevant period." The contention is that accordingly they are eligible for exemption Notification No.13/2003-ST dated 20.6.2003 upto 9.7.2004. 5. The contention of the Department is that during the period 2003-04, 2004-05 & 2005-06, the applicants have received commission and discount which is clearly evident from their balance sheet/annual report. As regards the contention of the applicants that they received the said commission on account of their having rendered services to Mutual Fund Distributors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence that they have received the commission directly from the Mutual Fund Companies being a registered mutual fund distributors. Therefore the case law cited is distinguishable and not applicable to their case. We find that the applicant is not a mutual find distributor, nor an agent of Mutual Fund Company. The contention is that the applicants also could not produce any evidence that the service tax has been paid by mutual fund companies on the element of commission received by them. 6. We find that they have procured mutual fund subscription for SKP Securities Ltd. and Eastern Financial Ltd. The applicants are not mutual fund distributors nor they are agents thereof. The applicants could not produce any evidence in this regard. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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