2019 (5) TMI 1352 - AT - Service Tax

Levy of service tax - NSE/BSE transaction charges taken as reimbursement from the clients - period April 2007 to September 2007 - HELD THAT - The issue whether the NSE/BSE transaction charges paid to National Stock Exchange and Bombay Stock Exchange and the same was collected from the client is liable to service tax or otherwise in the hands of stock broker has been settled in the judgments in the case of M/S J.V. CAPITAL SERVICES (P) LTD. VERSUS CST, DELHI 2017 (3) TMI 1156 - CESTAT NEW DELHI where it was held that the NSE/ BSE charges is not taxable. Demand set aside - appeal allowed - decided in favor of appellant.

Summary

Issues Involved: Liability to pay service tax on NSE/BSE transaction charges as reimbursement from clients for the period April 2007 to September 2007.

Analysis:
The judgment by the Appellate Tribunal CESTAT AHMEDABAD dealt with the issue of whether the appellant was liable to pay service tax on NSE/BSE transaction charges taken as reimbursement from clients for a specific period. The appellant's representative argued that the issue had already been settled in previous judgments, citing cases such as J.V. Capital Services (P) Ltd, LSE Securities Ltd, and Intercontinental Consultants & Technocrats Pvt. Ltd. The representative contended that these judgments established that NSE/BSE charges were not taxable. On the other hand, the Revenue's representative reiterated the findings of the impugned order.

Upon hearing both sides and examining the records, the Tribunal found that the question of whether the NSE/BSE transaction charges, paid to the National Stock Exchange and Bombay Stock Exchange and collected from clients, were liable to service tax had already been settled in previous judgments, specifically in the cases of J.V. Capital Services (P) Ltd and LSE Securities Ltd. The Tribunal concluded that the issue was no longer res-Integra. Consequently, the impugned order was set aside, and the appeal was allowed. The judgment was dictated and pronounced in open court by the Tribunal members.

This comprehensive analysis of the judgment highlights the legal arguments presented by both parties, the reliance on previous case law to support their positions, and the Tribunal's ultimate decision based on the settled legal precedent regarding the taxability of NSE/BSE transaction charges.