Order
1. The undisputed facts are that the Government had issued Notification No. 13 of 2003 Service Tax whereby it exempted the “Business auxiliary services provided by a commission agent” from the service tax leviable thereon under sub-section (2) of Section 66 of the Finance Act, 1994. Thereafter, the Circular dated 5-11-2003 was issued in which it is stated that having regard to some doubts that had arisen regarding application of service tax on the activity of mutual fund distribution, it was clarified that the commission received by distributors on mutual fund distribution would be liable to service tax as it would not fall within the expression “business auxiliary services”.
2. This Circular dated 5-11-2003 has been set aside by the High Court in the impugned judgment 2004 SCC OnLine AP 1313 on the ground that it amounts to foreclosing discretion or judgment that may be exercised by the quasi-judicial authority while deciding a particular lis under particular circumstances. The High Court referred to the proviso to Section 37-B of the Central Excise Act, 1944, which categorically states that such kind of circulars cannot be issued. We, thus, do not find any error in the impugned judgment 2004 SCC OnLine AP 1313. This appeal is accordingly dismissed.