TMI Blog2013 (7) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... the category of Merchant Banking activity – putting the liability prior to 2001 does not hold ground - the decision in CCE, Chennai Vs. Sundaram Finance Ltd(2007 (1) TMI 495 - CESTAT CHENNAI)also supports the view - classification done by the department of private placement of shares under management consultancy service has no basis - appeal allowed in the favour of the assessee. - ST/74/05 - A/1030/13/CSTB/C-I - Dated:- 7-5-2013 - P R Chandrasekharan And Anil Choudhary, JJ. For the Appellant : Shri Bharat Raichandani, Adv. For the Respondent : Ms D M Durando, Dy. Comm.(AR) PER : P R Chandrasekharan 1. The appeal is directed against Order-in-Appeal No. BR(2648)30/MI/2005 dated 31/01/2005 passed by Commissioner of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eral Finance Investment Co. Ltd. M/s. Sri Adhikari Brothers television Network Ltd., and M/s Morepen Laboratories Ltd. and during the material period these companies were not listed in the recognized stock exchange and therefore, the appellant is not liable to pay service tax under the category of stock broking service. They further pointed out that they are also an approved merchant banker under the SEBI Regulations and the activity undertaken by them would come under the category of "Merchant Banking Services" and this service was brought under the tax net with effect from July 2001. Since the impugned demand pertains to the period prior to that the question of demanding any service tax under this category would not arise. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g assigned to it in the Clause (f) of Section 2 of the Securities Contracts (Regulation ) Act, 1956. Inasmuch as the shares involved in the present transactions were not listed in any recognize stock exchange, the appellant was not liable to discharge any service tax liability on the said activity undertaken by them. The Ld. Counsel also submits that since 2001, in respect of similar activity undertaken by the appellant, they have registered themselves with the department under banking and other financial services as a Merchant Banker and has been discharging service tax liability, which has been accepted by the department without any dispute. He also submits that the activity undertaken by the appellant is that of a Merchant Banker and doe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsultancy service" at all. The activity undertaken by the appellant is private placement of shares which have not been listed in any recognized stock exchange. This activity comes under the category of Merchant Banking activity which includes management of any issued including preparation of prospectus, gathering information relating to the issue, determining financing structure, tie up of financiers, final allotment and refund of excess application money, investment advisor, manager, consultant or adviser to any issue including corporate advisory services and consultant or advise activities. The said activities are governed by Merchant Banker(s) Regulations, 1962. The appellant also holds a certificate of registration under the said regula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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