Activity of investment in mutual funds cannot be classified as exempted service hence rule 6 of CCR not applicable

GMR Hyderabad Air Cargo and Logistics Pvt Ltd Vs Commissioner of Central Tax Rangareddy (CESTAT Hyderabad)

CESTAT Hyderabad held that the activity of investment in mutual fund does not involve the presence of a service rendered by a service provider towards a recipient of service for some consideration. Accordingly, it cannot be classified as exempted service and hence the very charge for applying Rule 6 of Cenvat Credit Rules could not be sustained.

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