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TMI Blog2018 (7) TMI 1951X X X X Extracts X X X X X X X X Extracts X X X X ..... self register under the category of "Business Auxiliary Service" (BAS). They have received commissions from two agents M/s. Eastern Financier Ltd., Kolkata and M/s. SKP Securities Ltd., during the period 2005-06 and 2006-2007, for rendering the service of mobilization of mutual fund on behalf of the two mutual fund distributors. It is the case of the department that the Commission received from the distributors is chargeable to Service Tax under the category "Business Auxiliary Service", during the relevant time. Show Cause Notice dated 19/01/2009 was issued for non-payment of Service Tax. The Adjudicating Authority confirmed the demand of Service Tax amounting to Rs. 50,22,995/- along with interest and also imposed penalty under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts to the client and therefore, the allegation that the Services provided by the appellants to the mutual fund distributors, were procurement of goods & services, which are inputs for the client, is baseless and unfounded. He strongly contended that they were not liable to pay Service Tax under the category of "Business Auxiliary Service" as defined under Section 65 (19) of the Finance Act, 1994. 4. The Ld. DR reiterates the discussions and findings of the impugned order. 5. Heard both sides and perused the appeal record. 6. We find that the appellants are rendering their services to the distributors of various mutual fund companies and not directly to the mutual fund companies. We also find from the records that the mutual fund distr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit of the tax so paid on such service, only if entire chain of identity of sub-broker and stock broker is established and transactions are provided to be one and the same. Therefore, sub-brokers and stock-brokers are agent and principal. Asking the appellants to pay Service Tax shall amount to double taxation since as per the declarations of the mutual fund distributors, the asset management companies have made the payment of commissions to the mutual fund distributors after deduction of Service Tax at source. 8. We observe that Revenue has not suffered any loss due to discharge of tax liability by the asset management companies. There shall be no levy of tax on the present appellants. 9. In view of the above discussions, the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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