TMI Blog2013 (9) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... he expenses relating to provision for investment losses cannot be taken into account as credit. Stay granted subject to deposit of Rs. 2 crores. - 1641-1654/2012, 1688/2012, 2899-2901/2012, 25134-25135/2013 - MISC. ORDER Nos. 25685 to 25704/2013 - Dated:- 10-4-2013 - SHRI P.G. CHACKO AND SHRI B.S.V. MURTHY, JJ. For the Appellant: Mr. M.P. Baxi, advocate For the Respondent: Mr. R. Gurunathan, Additional Commissioner (AR) ORDER Per: B.S.V. Murthy; In these 18 appeals, the appellants are challenging the demand of service tax on the ground that amounts spent by various trusts which are known as Funds and which are engaged in the activity of collecting funds from investors and investing them as per the objectives of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t remuneration from the venture capital fund. Similarly Asset Management Company which is responsible for managing funds of the venture capital fund in terms of the objectives of the fund has also discharged the service tax liability on the fee collected by them for the services rendered. However the venture capital fund which is otherwise a trust, also incurs certain expenses for setting up the fund, management and for other purposes. The expenditure incurred by the trust can be categorized under audit fee, bank charges, local and professional charges, pre-incorporation expenditure, printing and stationery, in addition to management fee paid to the Asset Management Company. There are also other expenses incurred under various heads. Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on a specified portion of more than 80%, appellant is eligible for CENVAT credit since in respect of these expenses, service providers have paid the service tax and once the CENVAT credit of service tax is excluded, total amount liable to be paid by the appellants would come to over Rs. 2 crores only. It was also submitted that Department had taken provision for investment losses also as liable to service tax which was totally incorrect. 5. Learned AR on the other hand submits that it cannot be said that the trust and investors are one and the same. The very fact that the trustee, investor and Asset Management Company are separately identified would show that the trust and the investor cannot be one and the same. He also submits that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we find that the claim of the learned counsel that appellant is eligible for CENVAT credit in respect of various services received by the venture capital fund and once these are taken into account and also the expenses relating to provision for investment losses cannot be taken into account as credit, the liability would come down by more than 99%. In the result we find that it can be said that appellant has not been able to make out prima facie case in respect of the above Rs. 2 crores and we consider it appropriate that this amount should be deposited by the appellant towards pre-deposit so that the matter can be heard finally. Accordingly we direct the appellants to pre-deposit an amount of Rs. 2 crores (Rupees Two crores only) within 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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