Mutual fund redemption not “trading of goods”; no CENVAT reversal or extended limitation under Service Tax
The CESTAT New Delhi in the case of Godfrey Phillips India Limited held that subscription and redemption of Mutual Fund units cannot be considered “trading of goods/securities” under Section 66D(e) of the Finance Act, 1994 as it lacks transfer of title, involves unit cancellation/relinquishment rather than sale/purchase to third party, and thus does not qualify as “exempted service”