TMI Blog2018 (4) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... ble claim. As a consequence, the chit transaction becomes liable to tax under the Finance Act, 1994, from 2015 onwards. The amendment made in 2015 cannot be said to be clarificatory and there can be no retrospective operation given to such amendment. The legislature felt the need for inclusion of the transactions within the fold of service and hence amended the Finance Act, 1994 by Finance Act, 2015. Petition allowed. - W.A.Nos. 273,277,331,785,878,1357,1358,1359 of 2013, 474, 641, 815, 968, 1521 of 2014, 281/2018, 8774, 21909, 26203 of 2014, 10983, 11008, 11018, 12972, 13686, 20071, 22291 of 2015, 18700/2016, 6641/2017, 13280/2017 - - - Dated:- 14-3-2018 - MR. K. VINOD CHANDRAN AND MR. ASHOK MENON JJ. APPELLANT: BY ADV. SRI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Writ Petitions were filed before this Court, in which a learned Single Judge differed from the findings of the Andhra Pradesh High Court and held in favour of the Revenue by decision reported in 2013 (29) STR 557 (Ker.): 2012 (4) KHC 756, All Kerala Association of Chit Funds v. Union of India. Appeals were filed by the writ petitioners and the writ petitions pending and then filed, were posted along with the appeals. Pending these appeals, the Civil Appeals from the decision of the Andhra Pradesh High Court were considered and the liability negatived by the Honourable Supreme Court in AIR 2017 SC 3730. The decision of the Kerala High Court was specifically overruled. Later, some writ petitions filed were allowed, following the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement. The Honourable Supreme Court affirmed the view of the Andhra Pradesh High Court and elaborated on what exactly cash management is, finding chit transactions to fall outside such terminology. 5. In 2012, the inclusive definition of services was done away with and Section 65B(44) was introduced with a definition of services and a negative list, which would not be taxable. The same is as under: 44. service means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include- (a) an activity which constitutes merely,- (i) a transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or (ii) such transfer, delivery or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g held in the negative, the issue is no longer res integra. 6. Now, we come to the Finance Act, 2015, by which the sub-section (44) of Section 65B of the Finance Act was amended and an explanation was introduced in the following manner:- Explanation 2.- For the purposes of this clause, the expression transaction in money or actionable claim shall not include- (i) any activity relating to use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; (ii) any activity carried out, for a consideration, in relation to, or for facilitation of, a transaction in money or actionable claim, including ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertain. We are dealing with a taxing statute and when we find that goods falls within the domain of uncertainty, it would be difficult to lean in favour of the Revenue. 8. Hence, the amendment made in 2015 cannot be said to be clarificatory and there can be no retrospective operation given to such amendment. The legislature felt the need for inclusion of the transactions within the fold of service and hence amended the Finance Act, 1994 by Finance Act, 2015. As a corollary it has to be understood that it was not taxable prior to the amendment. We are hence of the opinion that the decision of the Honourable Supreme Court covers the two periods as agitated before this Court in the batch of Writ Appeals/Writ Petitions. W.A.No.281/2018 fil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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