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2007 (5) TMI 620 - AT - Service TaxStay application - brokerage charges - includibility - Held that - in similar matter, the stay order has been passed including waiver of pre-deposit of the amount in the case of CHANDRAVADAN DESAI Versus COMMISSIONER OF C. EX., CALCUTTA-I 1997 (9) TMI 1 - CEGAT (CALCUTTA) . Following ratio of the said order, the stay application is allowed - decided in favor of applicant.
Issues: Waiver of pre-deposit of service tax amount for "share brokers" regarding "handling charges" and "terminal charges".
In the judgment by the Appellate Tribunal CESTAT Bangalore, the appellant sought waiver of pre-deposit of service tax amount of Rs. 1,86,287. The issue revolved around the inclusion of "handling charges" and "terminal charges" in addition to the brokerage charges for services provided by share brokers. The appellant argued that these charges had no connection to the services of brokers and should not be subject to service tax. The Revenue, however, contended that these charges should be included for tax recovery purposes. The learned Counsel for the appellant referred to a previous case where waiver of pre-deposit was granted, emphasizing the lack of nexus between the additional charges and the services provided by share brokers. The learned DR representing the Revenue requested the matter to be linked with another appeal for final hearing. After considering the submissions from both sides, the Tribunal found that a similar stay order had been passed in a previous case, granting waiver of pre-deposit. Consequently, the Tribunal allowed the stay application and directed the Registry to link the current appeal with the related matter scheduled for final hearing on a specified date. In conclusion, the Tribunal's decision centered on granting the waiver of pre-deposit for the service tax amount in question, based on the precedent set in a previous case. The judgment highlighted the importance of establishing a clear nexus between additional charges and the core services provided by share brokers when determining the applicability of service tax.
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