Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2022 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (6) TMI 1128 - HC - Service TaxLevy of Service Tax - Chitty business - effect of amendment in the definition of the word ‘service’ from 15.06.2015 onwards, retrospective or prospective? - HELD THAT:- The question whether companies like the petitioners who are engaged in Chitty business are exigible to service tax was considered by the Hon’ble Supreme Court in UNION OF INDIA AND ORS. VERSUS M/S. MARGADARSHI CHIT FUNDS (P) LTD. ETC [2017 (7) TMI 224 - SUPREME COURT]. It was laid down in the said decision that after the amendment brought about to the definition of the word ‘service’ from 15.06.2015 onwards, service tax is payable on Chit Fund. Relying on the aforesaid decision, a Division Bench of this Court, in its judgment in ALL KERALA ASSOCIATION OF CHIT FUNDS VERSUS UNION OF INDIA AND OTHERS [2018 (4) TMI 73 - KERLA HIGH COURT] held that the amendment brought about to the definition of service cannot be said to be clarificatory and there can be no retrospective operation given to such amendment. As a corollary it has to be understood that service tax cannot be levied on Chit Funds prior to the amendment, i.e. 15.06.2015. In the light of the undisputed fact that the demand under Ext.P1 to Ext.P22 takes in demands for the period 2012-13 and 2013-14 and is hence unsustainable in law. In the circumstances, it is only appropriate to remand the matter to the adjudicating authority for fresh adjudication in the light of the law as laid down by the Hon’ble Supreme Court and followed by the Division Bench of this Hon’ble Court. For the purpose of such adjudication, necessarily an opportunity of hearing should be offered to the petitioner. Petition allowed by way of remand.
|