HC upholds non-taxability of chit funds business prior to 2015, states that issue is no longer res integra in view of SC decision in Margadarshi Chit Funds (P) Ltd. & Ors; Observes that chit transactions became liable to service tax only when Section 65B(44) of Finance Act was amended and Explanation introduced vide which transaction “by a foreman of chit fund for conducting or organizing a chit in any manner” was specifically excluded from definition of ‘transaction in money or actionable claim’; Rejecting Revenue contention that said amendment is clarificatory and should be given retrospective operation from 2012, HC remarks, “The legislature felt the need for inclusion of the transaction within the fold of service and hence amended the Finance Act, 1994 by Finance Act, 2015. As a corollary it has to be understood that it was not taxable prior to the amendment”; However, refrains from passing any positive orders insofar as claim for refund of amount already paid on authorities’ demand was concerned, stating that assessees would have to file refund applications on the basis of SC judgment; Observes, if no refund could be effected to the actual payee, then State would retain such amount and accordingly directs authorities to consider individual applications based on evidence furnished by assessees : Kerala HC
Citation: [TS-98-HC-2018(KER)-ST]