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TMI Blog2015 (2) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... iness of acquisition of shares, bonds, debentures or securities issued by a Government or Local Authority or other marketable securities of a like nature, the appellant can be categorized as a financial institution. Merely because the appellant is registered as a stock broker with the SEBI, which is a statutory requirement the appellant cannot be considered as a financial institution. If that be so, all stock brokers dealing in shares/securities would be financial institutions which is a totally wrong interpretation of the statutory definition of a financial institution. There is also no evidence available on record to show that the appellant has been registered under the RBI Act as a "Financial institution". - Conclusion of the lower autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng company or a financial institution including a non-banking financial company was liable to service tax. Appellant was not a "financial institution" as defined in section 45-I(c) of the RBI Act, 1934; which reads as follows: "(c) ''financial institution'' means any non-banking institution which carries on as its business or part of its business any of the following activities, namely:- (i) the financing, whether by way of making loans or advances or otherwise, of any activity other than its own: (ii) the acquisition of shares, stock, bonds, debentures or securities issued by a Government or local authority or other marketable securities of a like nature: (iii) letting or delivering of any goods to a hirer under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was held in the context of Non Banking Financial Company (NBFC) that merely because the appellant is registered as an NBFC, unless the activities are undertaken are of receiving deposits/lending, service tax liability cannot be fastened. In the present case, the appellant is not undertaking the activity of a financial institution and, therefore, the ratio of said decision would apply. 3. The learned Superintendent (AR) appearing for the Revenue reiterates the findings of the lower authorities. 4. We have carefully considered the submissions made by both the sides. 4.1 To fall within the tax net, the appellant has to be a banking company or a financial institution including a non-banking company. Obviously, the appellant is not a bank ..... X X X X Extracts X X X X X X X X Extracts X X X X
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