TaxTMI 
TaxTMI 
2017 (4) TMI 1135
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.... Commissioner of Central Excise (Adjn.), New Delhi. Both the assessee/appellant and the Department filed appeal against the said impugned order. The brief facts of the case are that the appellant/assessee are engaged in trading of securities as stock broker and are registered as a Member of National Stock Exchange and Mumbai Stock Exchange. They were registered with the Service Tax Department under the category of stock broking, banking and other financial services and business auxiliary service. Certain enquiries were carried out by the officers, to verify the correctness of payment of service tax by the appellant/assessee. After verification of the records, proceedings were initiated against the appellant/assessee by way of show cause not....
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....n or brokerage charged by a broker on the sale or purchase of securities including the commission or brokerage paid by the stock broker to subbroker. It is the contention of the appellant/assessee that payments made as pure agent of the client on various account of other charges, like transaction charges to stock exchanges, stamp duty to the Government authorities, Demat charges etc. cannot form part of taxable value of stock brokerage service. These charges have no nexus with the brokerage commission but were paid by the appellant/assessee on behalf of the clients; (b) the charges paid to stock exchanges were covered by "stock exchange service" taxable w.e.f. 16/05/2008 and the same are not taxable under stock broker service previ....
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....tion of the dispute. The said amount cannot be subjected to service tax ; (f) the best judgment assessment for the year 2003- 2004 is in violation of principles of natural justice as the appellant/ assessee was not given due notice regarding the basis of such assessment. 3. The Revenue has filed appeal against the impugned order on the ground that the demand for extended period in respect of turnover charges should not have been dropped by the Original Authority. Further, appropriate penalty under Section 78 attributable to short payment of service tax on this account should have been imposed by the Original Authority. 4. The learned AR contested the appeal filed by the appellant/ assessee. He submitted that the taxable value....
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....ion Rules. On the excess stamp duty charges collected and retained by the appellant/assessee it was recorded that the amount which is shown as reserve and surplus in the balance sheet cannot be considered as receipt on account of stamp duty and accordingly liable to be added in the gross value for service tax purposes. 6. Regarding short payment of service tax under the category of banking and other financial services, the Original Authority held that Demat charges, settlement charges, cheque book charges are all integral part of gross value in terms of Section 67 of the Finance Act, 1994. Regarding best judgment assessment followed for the year 2003-2004 in terms of Section 72, the Original Authority held that the ledger indicates the r....
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....e of authority beyond that shall make that fatal. 15. The correct assessable value of taxable service usually is the intrinsic value of the service provided since service commands that value only and that should only be taxed without any hypothetical rule of computation of value of taxable service under Section 67 of the Act. The other receipts a stock broker makes are irrelevant for determination of the assessable value of taxable service provided by him. Thus the test is whether a receipt of stock broker is in the nature or commission or brokerage to levy service tax. Burden of proof failed to be discharged by Revenue to bring the receipts to charge 16. The appellants in these appeals received "turnover charges"....
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.... facts of the present case are to be examined before applying the ratio of the above decision. We have perused sample copies of contract note issued by the appellant/assessee to sum up their claims. The said contract note shows various amounts under different headings. The note shows brokerage, net rate, service tax and STT amount, wherever applicable, in respect of each of the transactions carried out by the appellant/assessee on behalf of the client. In the end of the contract note, there is a heading "other charges". The main dispute relates to the tax liability of the appellant/ assessee for receipts under "other charges". The contract note itself does not elaborate the nature of such other charges. The appellant/ assessee claims that t....