1996 (10) TMI 1

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....ith effect from 4-7-1994, Service Tax of 5% was imposed on the brokerage. The Rules relating to the levy and collection of service tax provided for filing of returns and for assessment by the proper officer. The assessee filed one return for the period July, 1994 to Sept., 1994 and another return for the period Oct., 1994 to Dec., 1994. The assessing officer calculated the tax leviable on the value of the taxable service shown in Col. 3 of the periodical returns and came to the conclusion that the service tax deposited by the appellants was less than the tax calculated by him. The shortage was estimated by him for the first quarter at Rs. 36,749/- and for second quarter at Rs. 17,064/-. He confirmed the demand for the short levy. In his com....

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....llected on each transaction in the contract in Form A. He pointed out that in the new format also the information that the brokerage included service tax was indicated. He stated that so far neither the department nor the SEBI had given any specific instruction about the manner in which the service tax should be shown in the returns. He invited our attention to an advertisement in the Economic Times dated today (Friday the 11th October, 1996) inserted by the Mumbai Stock Exchange in which the Stock Exchange advised that in the contract service tax should be shown separately. Shri Sheth claimed that the format of contract in Form A which as prescribed by the BSE does not have a separate column to show the amount of service tax. He claimed th....

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....ions have been incorporated vide Section 83 of the Finance Bill, 1994. Therefore, there was no requirement to show the tax collected in a certain manner when filing the returns for assessment. The ld. advocate made a claim that the department has nowhere held that the appellants have collected more tax than what was paid by them. The dispute was only about their showing brokerage as inclusive of the service tax. On examination of the relevant provisions and on perusal of the orders, we find that this claim to be correct. In the absence of any specification, there was no prohibition on the appellants' showing the brokerage as inclusive of service charges. The fact that this claim was prominently made on the face of each contract has not been....