2011 (9) TMI 811

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....roker, it was only the main broker who could issue the transaction note and could issue the bill to the client for the total amount of brokerage. Prior to April 2005 in the cases of transaction through sub-brokers, while the sub-brokers used to issue bill to the client for their brokerage, stock brokers used to bill the sub-brokers and as such the brokerage was being charged by both the sub-broker as well as stock broker in their respective bills and both were making separate payment of service tax to the Government. However, with effect from April 2005 as per the new SEBI guidelines, the bills for the brokerage could be raised only by the main broker and the sub-broker would get only the commission, which was part of the gross amount of br....

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....es, the matter is heard for final disposal after waiving the pre-deposit. 3. Shri Alok Kothari, Advocate, the learned Counsel for the appellant, pleaded that, the appellant is a sub-broker, that since April 2005, in respect of all the transactions of purchase and sale of securities through sub-broker, it is the main broker who issues the transaction note and charges the brokerage, a part of which is shared by him with the sub-broker, that the appellant by virtue of the definition of broker under Section 65(101) of the Finance Act, 1994, as it stood during the period of dispute, were covered by the definition of broker and the service provided by them is service in connection with sale or purchase of securities listed on recognised s....

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....e, defended the impugned order by reiterating the findings of the Commissioner (Appeals) in it and emphasised that the activity of the appellant is essentially marketing the services of the brokers and, hence, the same would be chargeable to service tax as Business Auxiliary Service under Section 65(105)(zzb) readwith Section 65(19) of the Finance Act, 1994. He, therefore, pleaded that there is no infirmity in the impugned order. 4. We have carefully considered the submissions from both the sides and perused the records. 5. The period of dispute in this case from April 2005 to June 2006. During this period, the definition of stock broker as given in Section 65(101) of the Finance Act, 1994 was as under :- ''stock broker m....