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2014 (9) TMI 745 - AT - Service TaxManagement Consultancy services - private placement of shares of the client - Held that:- From the circular dated 9-7-2001 of the Board, the scope of the term ‘merchant banking services’ has been explained in detail. From the said circular it can be seen that merchant banking services is any service provided in relation to issue management, either by making arrangement regarding selling, buying or subscribing securities as manager, consultant, advisor or rendering corporate advisory service in relation to such issue management. The activity undertaken by the appellant squarely falls within this definition. The appellant is also registered as a merchant banker under the SEBI regulations. Therefore, the confirmation of demand under the category of ‘Management Consultancy Service’ is not sustainable under law. Since the transaction was undertaken in January, 2000 and the merchant banking activities rendered by ‘body corporate’ came under the tax net w.e.f. August, 2002, prior to that period no service tax would be leviable on merchant banking activity rendered by a ‘body corporate’ - Decided in favour of assessee.
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