Mutual Fund Redemption Not “Trading of Goods”; No CENVAT Reversal or Extended Limitation under Service Tax

Godfrey Phillips India Limited Vs Commissioner (CESTAT Delhi) Mutual Fund Redemption Not “Trading of Goods”; No CENVAT Reversal or Extended Limitation under Service Tax The CESTAT Delhi held that subscription and redemption of mutual fund units do not amount to “trading of goods/securities” under Section 66D(e) of the Finance Act, 1994 and therefore cannot be treated as “exempted service” requiring proportionate CENVAT credit reversal under Rule 6(3) of the CENVAT Credit Rules, 2004. The department had demanded ₹4.80 crore alleging that frequent mutual fund transactions constitut...