2018 (3) TMI 859

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....Comm. (AR), for respondent Shri.Karan. S. CA for appellant Shri.Atul Sharma, Asst. Comm. (AR) for respondent Per: Raju 1. The appellant M/s.Kaynet Finance Ltd. are in appeal against confirmation of demand of service tax and imposition of penalty under Section 76 & 78 of the Finance Act. 2. Ld. CA for the appellant pointed out that they are engaged in providing services under the cat....

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....sp; service provider prior to 10th day of September 2004.  He further pointed out that sub-broker was covered under the definition of stock broker only after  amendment on10/09/2004. Thus prior to 10/09/2004, the services provided by sub-broker was not taxable. He further argued that the second issue involved in the transactions related to demand of service tax on income shown under vari....

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.... who has either made an application for registration or is registered as a stock-broker or sub-broker, as the case may be, in accordance with the rules and regulations made under SEBI Act 1992". There is also no dispute by either side that when an application is made by a person for registration as a sub-broker or a person registered as such under SEBI Act 1992 read with the regulations made th....

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.... to investor was not liable to tax prior to 10/09/2004. The services provided by sub-broker to brokers  stand exempted vide Notification No.25/2004-ST for the past period. In view of the above, the demand in so far as it relates to the brokerage received by the appellant in a capacity as sub-broker is set aside. 5.2 In so far as the demand of service tax on income under various heads like,....