2011 (8) TMI 650 - AT - Service Tax

Stock Broker Service - Held That - the services provided by the sub broker in connection with the sale or purchase of securities listed in recognised stock exchange shall be taxable service with effect from 10.9.2004 when the definition of the stock broker as per section 65 (101) of Finance Act 1994 was amended. - In view of Vijay Sharma & Co. vs. CCE Chandigarh (2010 - TMI - 78818 - CESTAT NEW DELHI) case decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT, Delhi confirmed a service tax liability of Rs.77,682 against the appellants for the period 14.5.2003 to 31.12.2003. The appellants argued that they were not liable for tax as they were covered under the definition of stock broker services only after an amendment on 10.9.2004. The Tribunal, citing a previous case, ruled in favor of the appellants, stating that services provided by sub brokers in connection with the sale or purchase of securities listed in recognized stock exchanges became taxable only from 10.9.2004. The impugned order was set aside, and the appeal was allowed with consequential relief to the appellants.