TaxTMI 
TaxTMI 
2016 (1) TMI 391
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....ts are that the respondents have Service Tax registration under the category of Stock Broker and worked as sub-broker of the main broker. They entered into a tri-partite agreement with the clients and the main broker. Under Section 65(103)(a) of the Finance Act, 1994 'taxable service' was the service provided by stock broker in connection with the sale or purchase of the securities listed in the recognized stock exchange. Under Section 65(101), during the period of dispute the definition of 'stock-broker' is a person, who is registered as a stock broker or sub-broker as the case may be in accordance with the Rules and Regulations of Securities & Exchange Board of India (SEBI). The case of the department is that the sub-broke....
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....ENVAT Credit to the main broker, this cannot be a basis of setting aside the legally sustainable demand. The concept of revenue neutrality applies only when the CENVAT Credit is available to the same assessee under the same unit or in another unit. 4. Heard the parties and considered the submissions. 5. The learned Counsel for the respondent brought to our notice that on directions of the Hon'ble Punjab & Haryana High Court, Larger Bench in the case of Commissioner of Central Excise, Chandigarh Vs. M/s N.K. Chugh and Company - 2010 (18) STR 145 (P&H) considered judgments in the case of M/s Unique Investment Centre Vs. Commissioner of Central Excise, Chandigarh (supra) and Vijay Sharma & Co. Vs. Commissioner of Central Excise, Chandiga....
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....mes taxable service under Finance Act, 1994 w.e.f . 10-9-2004. A sub-broker is thus liable to pay service for the nature of taxable service provided as defined by Finance Act, 1994 aforesaid. 9. It is true that there is no provision under Finance Act, 1994 for double taxation. The scheme of service tax law suggest that it is a single point tax law without being a multiple taxation legislation. In absence of any statutory provision to the contrary, providing of service being event of levy, self same service provided shall not be doubly taxable. If Service tax is paid by a sub-broker in respect of same taxable service provided by the stock-broker, the stock broker is entitled to the credit of the tax so paid on such service if entire chain....
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.... 6. We find that the facts and circumstances of the present case are similar. The Larger Bench remanded cases for verification of facts whether tax was paid by Stock-brokers. However, in the present case it is explicitly stated by the Commissioner (Appeals) in his order that "in the instant case, I find that there was no dispute that the Service Tax was paid on the total brokerages by the main broker. The main broker is registered with Central Excise Department and the tax paid by them has been accepted by the department." In view of these facts, we do not find it necessary to remand the case. In fact, respectfully following the principle laid down by the Larger Bench, we hold that the tax is not payable by the sub-broker i.e. the responden....