2012 (8) TMI 717

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....h them. The appellant have service tax registration and paid service tax on the brokerage charged by them in connection with sale and purchase of securities. In course of audit of their records for the period October, 2002 to March, 2007, the department raised the following objections :- (a)     They had received an amount of Rs. 12,20,298/- from sub-broker as penalty charges in excess of the charges paid to the Bombay Stock Exchange during the period from October, 2002 to March, 2007. The Department was of the view that this amount should be treated as extra consideration for the taxable service being provided by them and should be charged to service tax and on this basis, the department was of the view that the serv....

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.... of the Commissioner (Appeals), this appeal along with stay application has been filed. 3. Heard both the sides in respect of stay application. 4. Shri Jatin Mahajan, Advocate, ld. Counsel for the appellants pleaded that the appellants are not providing leased circuit services which is chargeable to service tax under Section 65(105)(zd) read with Section 65(111) of the Finance Act, 1994, that this service, as is clear from the provisions of Section 65(105)(zd) is provided to a subscriber by a telegraph authority in a relation to a lease circuit, that the Appellant is not a telegraph authority and hence, there is no question of leased circuit services being provided by them, that as per Section 65(111) of Finance Act, 1994, t....