TaxTMI 
TaxTMI 
2025 (5) TMI 1453
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....llows: 2. M/s Globe Capital Market Limited [1] based on an intelligence received by Director General, GST was found to be a stock broker but was not paying service tax payable on certain payments/charges received from their clients. The appellant was found discharging their service tax liability on their income of brokerage. However, it was observed that in addition to the said brokerage, the appellants were receiving from their clients, an amount as Delayed Payment Charges [DPC] towards extending credit facilities but were not paying service tax on the said amount. 3. With these observations, that a show cause notice No. 321/2015 dated 15.12.2017 was served upon the appellants proposing the recovery of service tax amounting to Rs. 12....
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.... breach of terms of contract is already held to not to be an amount received towards a taxable service. Decision of this Tribunal in South Eastern Coalfields Ltd. Vs. Commissioner of Central Excise and Service Tax- 2020 (12) TMI 912-CESTAT New Delhi, is also relied upon. It is also submitted that the activity rendered by the appellant is wrongly held to be a declared services defined under Section 66E(e) of the Finance Act. South Eastern Coalfields Ltd. (supra) is again relied upon. With these submissions, the order under challenge is prayed to be set aside and the appeal is prayed to be allowed. 6. While rebutting these submissions, learned Departmental Representative has mentioned that amount in question is not an amount arising out of....
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....s, perusing the record of the appeal memo and the decision as relied upon by the appellant specifically the decision in the case of M/s India Infoline Limited (supra), we observe that the facts of the present case are identical to the facts in the said case. Same issue has been adjudicated in that case and it has been held by this Tribunal as follows: "10. Thus, it becomes clear that any income which gets generated up to the settlement of the agreement of rendering services which shall form the part of the taxable value of Section 67 of the Finance Act the service of stock broker gets completed when the terms and conditions of the contract entered with the client for sale/purchase of securities are completely accomplished. Thus the....
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....of Delayed Payment Charges (DPC) arising in the context of purchase of shares has been addressed by the Co-ordinate Bench of this Tribunal in the case of Religare Securities Limited Vs. Commissioner of Service Tax, 2014 (36) STR 937 (Tr.-Del) by holding that the same is not liable to service tax." 9. Once the amount is held to be in the nature of penal charges, we observe that the decision of this Tribunal in South Eastern Coalfields Limited (supra) which has been affirmed by Hon'ble Apex Court in the case of Commissioner of Central Excise and Service Tax Vs. South Eastern Coalfields Ltd.- 2023 (8) TMI 606 - SC squarely covers the present dispute. The DPC are not taxable as these charges are not an amount towards rendering service.....