2018 (11) TMI 1383

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....k exchange namely National Stock Exchange or Bombay Stock Exchange. The appellant collects the amount charged by the respective stock exchange and other statutory bodies from their clients on the transactions of purchases or sales of shares or securities undertaken by them for and on behalf of their clients. It has been the contention of the department that transaction charges collected by the appellant from their clients for providing stock broking services in connection with the sale or purchase of shares and securities. The appellants have failed to pay service tax on transaction charges received by from their clients them during period from October 2001 to March 2006. 2. In view of above, a show cause notice 24/04/2007 demanding servic....

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....findings, as mentioned in order-in-original. 4. Having heard both the sides the main issue before us for adjudication are following :- (i) whether the transaction charges recovered by the appellant from their clients for providing stock broking service of purchase and sales of the shares need to be included in the taxable value of service for charging service tax or not ; (ii) whether the Cenvat credit of Rs. 8,95,377/- + education cess of Rs. 16,643/- availed by the appellant on the strength of documents which are not approved documents as per the provisions of Rule 9 (1) of Cenvat Credit Rules is to be allowed for Cenvat availment or not. 5. Before answering the question it (i) above; it is necessary to have look at Section 67 of the ....

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....s between their client and the concerned stock exchanges/statutory bodies and accordingly the transaction charges collected by them from their clients have been deposited as it is with the statutory bodies and therefore same cannot be included in the taxable value of the service tax. In this regard we have perused the guidelines which have been provided by National Stock Exchange in their Circular dated 7th November, 1998 :-  "It is hereby notified to all the Trading Members in the Capital Market Segment of National Stock Exchange of India Ltd. that with effect from 1st December, 1998, transaction charges in respect of trades done shall be payable by the Trading Members at the following rates until further notice :- ............... ....

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....it in the appeal on this count and same is dismissed. 8. On the second question wherein Cenvat credits of Rs. 8,95,377/- + education cess of Rs. 16,643/- have been availed by the appellant on the documents which are not approved documents as per the provisions of Rule 9 (1) of the Cenvat Credit Rule. In this regard, we find that since the details contained in such documents has not been discussed either in the show cause notice or in the order-in-original it is very difficult to ascertain whether the documents on the strength of which appellants have availed the Cenvat credit fulfilled the requirement of details to be available as prescribed under proviso to Rule 9 (2) of the Cenvat Credit Rule or not. We are of the view that a substantive....