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TMI Blog2023 (5) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... ent under different categories; they are engaged in the trading of derivatives during the period from October 2011 to March 2016. Even if it may be negligible, it is an admitted fact that they have not maintained separate account for Cenvat credit availed for discharging the service liability for the taxable service provided by them. On going through the case laws submitted by the learned Counsel for the appellant in ACE CREATIVE LEARNING PVT. LTD. VERSUS COMMISSIONER OF CENTRAL TAX, BENGALURU SOUTH GST COMMISSIONERATE [ 2021 (4) TMI 687 - CESTAT BANGALORE] where this Tribunal has taken a decision regarding exempted service of trading in mutual fund and also held that extended period of limitation not invokable where Revenue s case is b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SPONDENT ORDER Per : P. A. AUGUSTIAN Briefly the facts of the case are that the appellant is a Public Company incorporated under the Companies Act, 1956. The appellant is engaged in the business of breeding race horses and registered with service tax department under the category of Sponsorship services, Renting of immovable property services and Sale of space for advertising services. As per the Order-in-Original, the adjudicating authority confirmed the demand of Rs.28,76,774/- being the service tax short paid by the assessee for the period from October 2011 to March 2016 under Section 73(1) of Finance Act, 1994 read with Rule 14 of the Cenvat Credit Rules, 2004. The appropriate interest on service tax confirmed and also i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer of title in goods by way of sale and cannot be a service and it cannot be construed as exempted service as defined in Rule 2(e) of the Cenvat Credit Rules. Further, learned Counsel for the appellant submitted that the total pro-rata credit that has to be reversed stands at lesser than Rs.6,13,013/- which is a higher figure under Rule 6(3A) of the Cenvat Credit Rules, 2004. Learned Counsel also submitted that investigation was commenced to ascertain the veracity of the ST-3 Returns submitted by the appellant and on conclusion of the said investigation, there is no evidence to invoke the extended period of limitation and even if it is assumed that the appellant has short paid the service tax, the demand should be limited to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing brief submissions. Thereafter, learned AR submitted a brief note stating that mutual funds and derivatives are a form of securities under the provision of Section 2(h) of Securities Contracts (Regulation) Act, 1956. Though mutual funds and derivatives are termed as Securities, the transactions involved in the said categories are completely different. The trading activity is different from redemption of mutual funds. An investor is buying or redeeming mutual fund shares directly from the fund itself. This is different from stocks and ETFs, wherein the counterparty to the buying or selling of a share is another participant in the market. He further submitted that the case laws relied upon by the learned Counsel for the appellant is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate; derivative; Units of any other such instrument issued to the investors under any mutual fund scheme; 6. I have gone through the case laws submitted by the learned Counsel for the appellant where this Tribunal has taken a decision regarding exempted service of trading in mutual fund and also held that extended period of limitation not invokable where Revenue s case is based on balance sheet, Returns and other records of the assessee and also as per the provisions of Securities Contracts (Regulation) Act, 1956. 7. Considering the above, the extended period of limitation cannot be invoked in the present case. Learned Counsel for the appellant submitted that the adjudicating authority was provided with the copies of finan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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