Jsel Securities Ltd. Vs. Commissioner of C. Ex.

Jsel Securities Ltd. vs Commissioner of C. Ex.

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi Decided Jan 29, 2007

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Citation: sooperkanoon.com/44682
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Judge: S Kang, Vice-, S T T.V.
Decided On: Jan 29, 2007
Subject: Sales Tax

Case Summary

AI-generated summary - not the official court judgment text.

Sales Tax

Key legal issue: Sales Tax

Parties & Advocates

Appellant / Petitioner

Jsel Securities Ltd.

Respondent

Commissioner of C. Ex.

Legal References

Reported In: (2007)9STJ31CESTATNew(Delhi)

Excerpt

2. the applicant filed this application for waiver of amount of service tax of rs. 7,45,634/- and penalties. the contention of the applicant is that they are registered with the service tax authorities as stock broker and they are paying service tax on the brokerage, delivery brokerage received from the sub-broker. the contention is that the revenue wants to add the turnover tax to the assessable value as brokerage for charging the service tax. the contention is that turnover charges payable to recognized stock exchange whereas applicant is registered and it has no connection with the brokerage or delivery brokerage received from the sub-broker. under the security contracts regulation act, 1956 the stock broker is registered with the recognized stock exchange and the stock broker is liable to pay certain amounts as fee.3. the contention of the revenue is that the applicant is receiving this amount from their customers, therefore, it is brokerage or delivery brokerage, therefore, the applicant is liable to pay service tax on this amount also.4. we find that the applicants were separately showing the turn over tax in the contract note issued to the clients as turnover tax and this is to be deposited with the recognized stock exchange where the applicant has registered and is not part of brokerage. in these circumstances, we find, prima facie, the applicant had a strong case in their favour, therefore, pre-deposit of the amount of service tax and penalties are waived. the stay petition is allowed.

Full Judgment

2. The applicant filed this application for waiver of amount of Service Tax of Rs. 7,45,634/- and penalties. The contention of the applicant is that they are registered with the Service tax authorities as stock broker and they are paying Service tax on the brokerage, delivery brokerage received from the sub-broker. The contention is that the Revenue wants to add the turnover tax to the assessable value as brokerage for charging the Service tax. The contention is that turnover charges payable to recognized stock exchange whereas applicant is registered and it has no connection with the brokerage or delivery brokerage received from the sub-broker. Under the Security Contracts Regulation Act, 1956 the stock broker is registered with the recognized stock exchange and the stock broker is liable to pay certain amounts as fee.

3. The contention of the Revenue is that the applicant is receiving this amount from their customers, therefore, it is brokerage or delivery brokerage, therefore, the applicant is liable to pay Service tax on this amount also.

4. We find that the applicants were separately showing the turn over tax in the contract note issued to the clients as turnover tax and this is to be deposited with the recognized stock exchange where the applicant has registered and is not part of brokerage. In these circumstances, we find, prima facie, the applicant had a strong case in their favour, therefore, pre-deposit of the amount of Service tax and penalties are waived. The stay petition is allowed.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Delh... Same Parties Jsel Securities Ltd. vs Commissioner of C. Ex. Same Subject Sales Tax Same Judge S Kang, Vice-, S T T.V.