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2014 (7) TMI 33 - AT - Service TaxPenalty u/s 76, 77 & 78 - waiver of penalties u/s 80 - commission received on sale of RBI bonds and mutual funds - appellant paid the amount of service tax before issuance of show cause notice - Held that:- Board issued Circular No. 66/15/2003 dated 5.11.2003 wherein it has been clarified that the benefit of Notification 13/2003-ST is applicable only for commission agent dealing in goods and not to the commission received by the distributor of mutual funds. This circular was subsequently quashed by the Hon'ble Andhra Pradesh High Court in the case of Karvy Securities Ltd. [2004 (9) TMI 604 - ANDHRA PRADESH HIGH COURT]- Tribunal in the case of CST vs. P.N. Vijay Financial Services Pvt. Ltd. reported in [2008 (9) TMI 72 - CESTAT, NEW DELHI] held that mutual fund units being goods as per the definition of Section 65(5) of the Finance Act read with Section 2(7) of the Sale of Goods Act, stand at par with the stock and share and the same are to be treated as goods. In view of the above decision, we find merit in the contention of the appellants regarding imposition of penalties. By invoking the provisions of Section 80 of the Finance Act, the penalties imposed under Sections 76, 77 and 78 are set aside, otherwise the impugned order is upheld - Decided partly in favour of assessee.
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