TMI Blog2017 (3) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... of commission service - reliance was placed on the decision of Tribunal in the case of Jubilant Life Sciences Ltd. vs. CCE Noida [2013 (5) TMI 393 - CESTAT NEW DELHI] where identical set of facts were examined and the Tribunal held that said services of underwriting cannot be taxed under Banking and Financial Services - appeal allowed - decided in favor of appellant. - ST/64/2010 - Final Order No. 50408/2017 - Dated:- 11-1-2017 - Mr. S K Mohanty, Member (Judicial) and Mr. B Ravichandran, Member (Technical) Shri Kamal Agarwal, Chartered Accountant for the Appellants Shri Sanjay Jain, DR for the Respondent ORDER The appeal is against order dated 15.10.2009 of Commissioner of Central Excise (Adjn), New Delhi. 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... constitutes 99% of commission payable to Merchant Bankers who managed bonds. It is the plea of the appellant that such underwriting services is a separate category and cannot be taxed under Banking and Financial Services during the material period. Reliance was placed on the decision of Tribunal in the case of Jubilant Life Sciences Ltd. vs. CCE Noida [2013 (29) STR 529 (Tri-Del)] where identical set of facts were examined and the Tribunal held that said services of underwriting cannot be taxed under Banking and Financial Services. 4. Learned AR submitted that the Commissioner in the impugned order examined the contract and the essential character of services is relating to mobilizing fund and is essentially merchant banking servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing Underwriting Service is incidental to the services rendered as a Lead Manager to the issue. This is basically because the latter involves basically organizing an event viz. issue of the FCCBs and the former involves financial risk to the underwriters and the two matters are totally different in nature. We are also not in agreement with the argument that the contract has to be considered as a whole and classified considering it as a single service and subjected it to tax. This is because the services are distinct in nature and the contract lays down the services as distinct services with separate remuneration fixed for the two services. Further if at all it is to be considered as one single bundle we do not agree with the contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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