2008 (8) TMI 61

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....ssioner of Central Excise dated 05.10.2006 upholding the order-in-original of the Assistant Commissioner dated 30.06.2006 confirming the Service Tax demand of Rs. 68,341/- with interest thereon. 2. The appellant is a sub-broker and the point for consideration is whether as a sub-broker he is liable to pay Service Tax. The dispute relates to the period from October, 2004 to September, 2005. 3. The case of the appellant is that in terms of the guidelines of the Securities and Exchange Board of India (SEBI) dated 23.09.2003, a sub-broker cannot directly deal with the investor and, therefore, as no service in connection with the sale or purchase of securities is/can be provided by him, he is not liable to pay Service Tax. It is said that ....

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.... means any service provided to an investor by stock-broker in connection with the sale or purchase of securities listed on a recognized stock exchange." By the amendment, the words "any person" were substituted for "an investor". Thus any service provided to "any person", and not only to an investor, by a stock-broker, would amount to taxable service within the meaning of Section 65(105) (a) of the Act. As indicated above, the definition of 'stock-broker' was also amended by the same amendment effective from 10.9.2004 to include sub-broker within its fold. Apparently, the definition of 'sub-broker' in Clause (103) had become redundant. 6. It would thus appear that where a sub-broker provides any service in connection w....