Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Best SIP mutual funds: Top 10 schemes with up to 27% annualised returns — ₹10,000 monthly SIP grows to ₹49 lakh in 10 years – Money News
    • Capri Global Capital annonce que Quant Mutual Fund augmente sa participation dans la société à 5,96 %
    • Yilgarn Iron Investments Pty Ltd finalise l’acquisition du complexe Yilgarn Hub Iron Ore auprès de Mineral Resources Limited
    • Rs 6,000 SIP Vs Rs 6,00,000 Lump Sum: Which can generate a higher corpus in 30 years?
    • Jio BlackRock Mutual Fund makes debut with three debt scheme launches
    • L’intégrale de BFM Bourse du lundi 30 juin
    • BFM Bourse : 17h/18h – 30/06
    • Is UTI Large & Mid Cap Fund right for you? Key insights for 2025 investors
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Mutual Funds»Subscription & Redemption Of Liquid Mutual Fund Units Can’t Be Termed As “Trading Of Goods”, CENVAT Credit Admissible: CESTAT
    Mutual Funds

    Subscription & Redemption Of Liquid Mutual Fund Units Can’t Be Termed As “Trading Of Goods”, CENVAT Credit Admissible: CESTAT

    May 8, 2025


    The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that subscription and redemption of liquid mutual fund units can’t be termed as “trading of goods”.

    The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the activity of investment in mutual funds does not involve the presence of a service rendered by a service provider towards a recipient of service for some consideration. The activity undertaken would not amount to “service” in terms of Section 65B(44) of the Finance Act, 1994.

    In this case, the assessee/appellant took credit of service tax paid on various input services which are used in renting various outward services such as providing Manpower Recruitment/Supply Agency Service, Commercial Training, Coaching, Renting of Immovable property etc.

    The assessee had also invested in surplus funds in various mutual funds by way of subscription to mutual funds units. The assessee redeemed such units as and when the additional funds were needed to meet the business requirements.

    A Show cause notice was issued to the assessee alleging that the activity of investment in mutual funds is akin to “trading of goods” in the Negative List and hence is an exempt service as defined in Rule 2(e) of CCR read with section 66D(e) of the Finance Act, 1994.

    Therefore, CENVAT credit attributable to input services which were used commonly in relation to provision of taxable services as well as trading of goods, is not admissible, and as the assessee did not maintain separate accounts in relation to these two kinds of services in terms of rule 6(2), they are liable to pay an amount equal to 6%/7% of the value of exempted services under rule 6(3) of the CCR.

    The adjudicating authority confirmed the demand under SCN. The appeal filed by the assessee has been dismissed by the impugned order.

    The assessee submitted that the issue relating to non-reversal of proportionate credit availed on common input services used in relation to redemption of mutual funds by considering it to be trading of goods which is an exempted service under section 66D(e) of the Finance Act, 1994.

    The bench opined that the subscription and redemption of liquid mutual fund units cannot be termed as “trading of goods” and, therefore, do not fall under the exempted services under Section 66D(e) of the Finance Act.

    The activity to classify as “exempted service” under Rule 2(e) of the Cenvat Credit Rules, 2004 needs to be qualified as “service”, as defined under Section 65B (44) of the Act, meaning thereby that service is an activity carried out by a person for another for consideration and includes a “declared service” but excludes a transfer of title in goods or immovable property by way of sale, gift, etc, added the bench.

    In view of the above, the Tribunal allowed the appeal.

    Case Title: M/s. Career Point Limited v. Commissioner of Central Goods & Service Tax, Excise and Customs, Udaipur

    Case Number: Service Tax Appeal No. 52382 of 2019

    Counsel for Appellant/ Assessee: B.L. Narsimhan and Daliya Singh

    Counsel for Respondent/ Department: Aejaz Ahmad

    Click here to download order/judgment





    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    Best SIP mutual funds: Top 10 schemes with up to 27% annualised returns — ₹10,000 monthly SIP grows to ₹49 lakh in 10 years – Money News

    June 30, 2025

    Capri Global Capital annonce que Quant Mutual Fund augmente sa participation dans la société à 5,96 %

    June 30, 2025

    Rs 6,000 SIP Vs Rs 6,00,000 Lump Sum: Which can generate a higher corpus in 30 years?

    June 30, 2025
    Leave A Reply Cancel Reply

    Top Posts

    Best SIP mutual funds: Top 10 schemes with up to 27% annualised returns — ₹10,000 monthly SIP grows to ₹49 lakh in 10 years – Money News

    June 30, 2025

    Qu’est-ce qu’un green bond ?

    December 7, 2017

    les cat’ bonds deviennent incontournables

    September 5, 2018

    Quel est le rôle du service des impôts des particuliers (SIP) ?

    May 7, 2020
    Don't Miss
    Mutual Funds

    Best SIP mutual funds: Top 10 schemes with up to 27% annualised returns — ₹10,000 monthly SIP grows to ₹49 lakh in 10 years – Money News

    June 30, 2025

    Do you also want to invest in mutual funds, but are unable to save a…

    Capri Global Capital annonce que Quant Mutual Fund augmente sa participation dans la société à 5,96 %

    June 30, 2025

    Yilgarn Iron Investments Pty Ltd finalise l’acquisition du complexe Yilgarn Hub Iron Ore auprès de Mineral Resources Limited

    June 30, 2025

    Rs 6,000 SIP Vs Rs 6,00,000 Lump Sum: Which can generate a higher corpus in 30 years?

    June 30, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Malaysia sees record US$86 billion of approved investments in 2024

    February 24, 2025

    FPX: Growth ETF Focused On IPOs (NYSEARCA:FPX)

    August 7, 2024

    Is S&P 500 Expected to Underperform? ETFs in Focus – October 23, 2024

    October 23, 2024
    Our Picks

    Best SIP mutual funds: Top 10 schemes with up to 27% annualised returns — ₹10,000 monthly SIP grows to ₹49 lakh in 10 years – Money News

    June 30, 2025

    Capri Global Capital annonce que Quant Mutual Fund augmente sa participation dans la société à 5,96 %

    June 30, 2025

    Yilgarn Iron Investments Pty Ltd finalise l’acquisition du complexe Yilgarn Hub Iron Ore auprès de Mineral Resources Limited

    June 30, 2025
    Most Popular

    ₹10,000 monthly SIP in this debt mutual fund has grown to over ₹70 lakh in 23 years

    June 13, 2025

    ₹1 lakh investment in these 2 ELSS mutual funds at launch would have grown to over ₹5 lakh. Check details

    April 25, 2025

    ZIG, BUZZ, NANC, and KRUZ

    October 11, 2024
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.