Supreme Court - Daily Orders
Union Of India vs M/S. Karvy Stock Broking Ltd. on 23 July, 2015
Bench: A.K. Sikri, Rohinton Fali Nariman
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 6911 OF 2005
UNION OF INDIA AND ORS. ... Appellants
VERSUS
M/S. KARVY STOCK BROKING LTD. ... Respondent
O R D E R
The undisputed facts are that the Government had issued Notification No. 13 of 2003-Service Tax whereby it exempted the 'Business auxilliary services provided by a commission agent' from the service tax leviable thereon under sub-Section (2) of Section 66 of the Finance Act, 1994. Thereafter, circular dated 05.11.2003 was issued in which it is stated that having regard to some doubts that had arisen regarding application of service tax on the activity of mutual fund distribution, it was clarified that the commission received by distributors on mutual fund distribution would be liable to service tax as it would not fall within the expression 'business auxilliary services'. This circular dated 05.11.2003 has been set aside by the High Court in the impugned judgment on the ground that it amounts to foreclosing discretion or judgment that may be exercised by the quasi judicial authority while deciding a Signature Not Verified particular lis under particular circumstances. The High Digitally signed by Suman Wadhwa Date: 2015.07.29 17:43:45 IST Reason: Court referred to the proviso to Section 37B of the Central Excise Act, 1944, which categorically states that such kind C.A. NO. 6911/ 2005 1 of circulars cannot be issued. We, thus, do not find any error in the impugned judgment. This appeal is accordingly dismissed.
........................, J.
[ A.K. SIKRI ] ........................, J.
[ ROHINTON FALI NARIMAN ] New Delhi;
July 23, 2015.
C.A. NO. 6911/ 2005 2 ITEM NO.104 COURT NO.12 SECTION IIIA S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS Civil Appeal No. 6911/2005 UNION OF INDIA AND ORS. Appellant(s) VERSUS M/S. KARVY STOCK BROKING LTD. Respondent(s)
(With appln. (s) for stay and office report) Date : 23/07/2015 This appeal was called on for hearing today. CORAM :
HON'BLE MR. JUSTICE A.K. SIKRI HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN For Appellant(s) Mr. K. Radhakrishnan, Sr. Adv. Ms. Nisha Bagchi, Adv. Ms. B. Sunita Rao, Adv. Ms. Pooja Sharma, Adv. Mr. P. Parmeswaran, Adv.
For Respondent(s) Mr. Tarun Gulati, Adv. Mr. R. Chandrachud, Adv. Mr. Kishore Kunal, Adv. Mr. Nikhil Nayyar, Adv.
UPON hearing the counsel the Court made the following O R D E R The appeal is dismissed in terms of the signed order.
(Nidhi Ahuja) (Suman Jain)
COURT MASTER COURT MASTER
[Signed order is placed on the file.] C.A. NO. 6911/ 2005 3