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ST – Statutory payments viz. NSE/BSE charges and SEBI turnover fees made by stock broker and taking reimbursement from their client is not subject to levy of Service Tax: CESTAT

2019-TIOL-2409-CESTAT-AHM

IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
WEST ZONAL BENCH, AHMEDABAD
REGIONAL BENCH
COURT NO. III

Service Tax Appeal No. 424 of 2011-DB

Arising out of OIA 92/2011/STC/KANPAZHAKAN/COMMR-A-/AHD, Dated: 18.04.2011
Passed by Commissioner of Service Tax-Service Tax – Ahmedabad

Date of Hearing: 13.05.2019
Date of Decision: 13.05.2019

EDELWEISS FINANCIAL ADVISORS LTD
ANAGRAM HOUSE, H L COMMERCE COLLEGE STADIUM ROAD
NAVRANGPURA, AHMEDABAD GUJARAT, 390009

Vs

COMMISSIONER SERVICE TAX AND SERVICE TAX
7 TH FLOOR, CENTRAL EXCISE BHAWAN, NR. POLYTECHNIC
CENTRAL EXCISE BHAVAN, AMBAWADI, AHMEDABAD, GUJARAT, 380015

WITH

Service Tax Appeal No. 465 of 2011-DB

Arising out of OIA 108/2011/STC/KANPAZHAKAN/COMMR-A-/AHD, Dated: 11.05.2011
Passed by Commissioner of Service Tax-Service Tax – Ahmedabad

EDELWEISS FINANCIAL ADVISORS LTD
ANAGRAM HOUSE, H L COMMERCE COLLEGE STADIUM ROAD
NAVRANGPURA, AHMEDABAD GUJARAT, 390009

Vs

COMMISSIONER SERVICE TAX AND SERVICE TAX
7 TH FLOOR, CENTRAL EXCISE BHAWAN, NR. POLYTECHNIC
CENTRAL EXCISE BHAVAN, AMBAWADI, AHMEDABAD, GUJARAT, 380015

Appellant Rep by: Shri Amal Dave, Adv.
Respondent Rep by:
 Shri Gobind Jha, Supdt. AR

CORAM: Ramesh Nair, Member (J)
Raju, Member (T)

ST – The issue involved is that whether the NSE/BSE charges and SEBI turnover fees collected being a stock broker from their clients which is reimbursement of their payment made to NSE/BSE is to be included in the value of stock broker services – The issue has been settled by various judgments including the judgment of this bench in the case of Span Caplease Pvt. Ltd. according to which the statutory payment made by the stock broker and taking reimbursement from their client is not subject to levy of Service Tax – Considering the aforesaid decision of Tribunal, the impugned order is set aside: CESTAT

Appeal allowed

Case law cited:

Span Caplease Pvt. Ltd. vs C.S.T Ahmedabad vide FO no. A/12761- 12788/2017 dated 29.09.2017…Para 2

FINAL ORDER NOS. A/10946-10947/2019

Per: Ramesh Nair:

The issue involved is that whether the NSE/BSE charges and SEBI turnover fees collected being a stock broker from their clients which is reimbursement of their payment made to NSE/BSE is to be included in the value of stock broker services.

2. Shri Amal Dave, Ld. Counsel appearing on behalf of the appellant submits that this bench has already settled this issue relying on various judgments in the case of Span Caplease Pvt. Ltd. vs C.S.T Ahmedabad vide FO no. A/12761- 12788/2017 dated 29.09.2017. Following the decision, the issue is no longer in dispute.

3. Shri Gobind Jha, Ld. Supdt. (AR) appearing on behalf of the Revenue reiterates the finding of the impugned order.

4. We have heard both sides and perused the records. The issue that whether the BSE/NSE charges and SEBI turnover fees needs to be included in the assessable value of services of stock broker has been settled by various judgments including the judgment of this bench in the case of Span Caplease Pvt. Ltd.(supra) according to which the statutory payment made by the stock broker and taking reimbursement from their client is not subject to levy of Service Tax. Considering the aforesaid decision of the tribunal, we set aside the impugned order and allow the appeal.

(Dictated and pronounced in the open court)

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