Mutual fund redemption not "trading of goods"; no CENVAT reversal or extended limitation under Service Tax
Last updated: 24 February 2026
Court :
CESTAT New Delhi
Brief :
The CESTAT New Delhi in the case of Godfrey Phillips India Limited v. Commissioner, Central Tax, GST, Delhi East [Final Order No. 51817/2025, order dated December 5, 2025] 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" requiring proportionate CENVAT credit reversal under Rule 6(3) of CENVAT Credit Rules, 2004.
Citation :
Final Order No. 51817/2025, order dated December 5, 2025
You have reached daily limit of 2 Free Judgements. To view this or other Judgements please subscribe to CCI PRO :
Stay updated! Stay ads free
Browse CAclubindia ads free.
Latest updates on WA.
Daily E-Newsletter and much more.
CCI PRO annual subscription :
Original Price : INR 2999/-
Offer Price : INR 1999/-
Duration : 1 year
(Prices Inclusive of GST)
Know More
Note: If you are a PRO member already, please click here to login (for ad free experience)
Bimal Jain
Published in Others
Views : 39
Comments
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
