9911796707
TMI Blog2019 (4) TMI 1599X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration Certificate No. AAHCS2907GST001 for Provider/Recipient of work contract, Design Services, Business Support Services etc., and are availing the credit of the tax paid on „input services‟ under the provisions of Cenvat Credit Rules, 2004. The internal audit party, during the course of audit on their records for the period 01/2013 to 03/2017 had observed that they were also engaged in purchase and redemption of various Mutual Fund Units. The department‟s contention is that, trading in units of mutual funds is to be considered as „trading in goods‟ and falls under the negative list as per the definition given in Section 66D (e) of the Finance Act, 1994 and hence such activities is not liable to be tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Heard both the parties and perused the records. 3. Learned consultant appearing for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and the provisions of law. He further submitted that both the authorities have proceeded on wrong premises that the appellant is engaged in the activity of purchasing and sale of Mutual Funds. He further submitted that the trading as used in Section 66D is to be understood as regular buying and selling of stocks and shares. He also submitted that the intent of the word "Trading" and phrase "Trading of Goods" used in Section 66D is to indicate buying and selling of goods which is held in stock as regular course of bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eemed when there is necessity of funds and the same is utilized for the operational need of the company. Further I find that the appellant is not engaged in the business of trading in securities (Mutual Funds) but the investment in Mutual Fund is an investment activity and gain from return of Mutual Fund is taxed as capital gain and not as business income. Further I note that the Commissioner (Appeals) in para 14 has observed that the appellant has availed and utilized credit on common input services viz. Works Contract Services, Interior Decorator and Design Services, Architect Services etc which were used both for provision of taxable services as well as exempted services viz. trading in Mutual Fund securities and had neither maintained s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
