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TMI Blog2024 (6) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred Rule 2(1)(d)(vi) of Service Tax Rules - From the plain reading of the above Rule 2(1)(d) (vi), it can be seen that on business auxiliary service in relation to distribution of mutual fund by mutual fund distributors or agent as the case may be it is the mutual fund or asset management company who are liable to pay Service Tax as recipient of service. In the present case demand was admittedly made under business auxiliary service. The activity of promotion and marketing of mutual fund is also in relation to distribution of mutual fund therefore, there is no difference between the incentive received towards promotion and marketing of mutual fund and/or Commission received towards the distribution of mutual fund. Therefore, even the incentive received for promotion in marketing of mutual fund from various AMCs also covered under Rule 2(1)(d) (vi). Accordingly the service recipient is the person who is liable to pay the Service Tax. Therefore, as per statutory provision under Section 68(2) to of the act read with the Rule 2(1)(d) (vi) of Service Tax Rules, 1994. The appellant is not liable to pay Service Tax under business auxiliary service. Whether the appellant is liable to pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive for promotion and marketing of mutual fund. The case of the Department is that other than the normal Commission in relation to distribution of mutual fund on behalf of the asset management company, the incentive received by the appellant is liable to Service Tax under business auxiliary service. The second issue is that the Appellant also publish in house monthly /quarterly letter/ magazine title 'FUNDS WATCH' for private circulation among their clients sub- distributors network informing investors about available financial products and mutual funds scheme in operation. For this magazine appellant received advertisement from the mutual fund, in this case the department s case is that since, the appellant has given advertisement service by selling of space in their magazine they are liable to pay Service Tax under the category of sale of space or time for advertising sales. The appellant apart from the above activity also under taking training session for the distributors when they are enrolled. The department has demanded Service Tax on activity under commercial or coaching service. 2. Ms. Puloma Dalal, Learned Chartered Accountant appearing on behalf of the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Finance Ltd. Vs. Commr. of C. Ex. S.T. Surat-I2023 (68) GSTL 143 (Tri.- Ahmd.) In Re: Shanthala Finance Pvt. Ltd. 2016 (41) S.T.R. 360 (Commr. Appl.) Aker Solutions India Sdn. Bhd. Vs. Pr. Commissioner, Kakinada Commr, Visakhapatnam 2022 (64) G.S.T.L. 240 (Tri. - Hyd.) Reliance Securities Ltd. Vs. Commr. of Service Tax, Mumbai-II2019 (20) G.S.T.L. 265 (Tri. - Mumbai) Commr. Of Cgst Central Excise Vs Rama Sales And Services 2018 (12) G.S.T.L. 286 (All.) Commr Of Central Excise, Nagpur Vs Media World Enterprises 2015-TIOL-375-CESTAT-MUM Fertiplant Engg. Co. Pvt. Ltd. Vs. Commr. of Central Excise, Raigad 2017 (3) G.S.T.L. 312 (Tri. Mumbai) Ashu Export Promoters (P) Ltd. Vs. Commr. Of Service Tax, New Delhi 2012 (25) S.T.R. 359 (Tri. - Del.) WLC College India Ltd. Vs. Commr. Of Service Tax, Delhi 2012 (27) S.T.R. 377 (Tri. - Del.) Vasanth Color Laboratories Ltd Vs. Commissioner Of Service Tax 2022-TIOL-437-CESTAT-BANG Kirloskar Oil Engines Ltd. Vs. Commissioner Of Central Excise, Nasik 2004 (178) E.L.T. 998 (Tri. - Mumbai) Rolex Logistics Pvt. Ltd. Vs. Commissioner Of Service Tax, Bangalore 2009 (13) S.T.R. 147 (Tri. - Bang.) Cabcon India Pvt Ltd Vs. Commr. Of Central Excise, Kolkata ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of the mutual fund. So long any business auxiliary service is provided which is in relation to distribution of mutual fund in such case the service provider is not liable to pay Service Tax. 4.2 The activity of promotion and marketing of mutual fund is also in relation to distribution of mutual fund therefore, there is no difference between the incentive received towards promotion and marketing of mutual fund and/or Commission received towards the distribution of mutual fund. Therefore, we are of the view that even the incentive received for promotion in marketing of mutual fund from various AMCs also covered under Rule 2(1)(d) (vi). Accordingly the service recipient is the person who is liable to pay the Service Tax. Therefore, as per statutory provision under Section 68(2) to of the act read with the Rule 2(1)(d) (vi) of Service Tax Rules, 1994. The appellant is not liable to pay Service Tax under business auxiliary service. 4.3 The second issue to be decided by us is whether the appellant is liable to pay Service Tax of sale of space or time under advertising service in respect of the advertisement published in their magazine namely FUNDS WATCH . The appellant have also subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ogue designs to present a line of products not to provide information facility, the ordering process. From the above definition of trade colleague, it is clear that any company who wants to give the details of their products such as different quality of products specification thereof to facilitate their prospective Customer for ordering the product for sale is the book which is called trade catalogue. The facts of the present case from the magazine FUNDS WATCH it is clear that these magazine does not contain a particular company s product details for the purpose of sale of the same to their customer. The magazine contains various news matters and also details of mutual funds of various AMC'S. Therefore, in our considered view these magazine cannot be categorized as trade catalogue. Accordingly, clearly falls under the exclusion category of book provided under the sub clause (zzzm) of Section 65 (105) of Finance Act, 1995. Therefore, the same cannot be taxed under the head of sale of space for time for advertisement as the demand on this count is also not sustainable. 4.7 As regard the third issue that the Revenue has demanded Service Tax under commercial training or coaching se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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