ARC Trustee Services Not Taxable as Banking Services; ₹50 Cr Demand Set Aside on Mutuality Principle

Asset Reconstruction Company (India) Limited Vs Principal Commissioner (CESTAT Mumbai) Asset reconstruction company trustee services not taxable under banking & financial services – Demand of over Rs. 50 crores set aside; mutuality principle applied: CESTAT Mumbai The appellant is the largest Asset Reconstruction Company in India. It is registered as an NBFC. It floats a “trust” for liquidation of NPAs of banks. It issues security receipts (SR) in terms of Section 7 and 7A of the SARFAESI Act, 2002. It receives management fees for managing the trust as the trustee. It also earns ...