2019 (10) TMI 325 - AT - Service Tax

Levy of service tax - NSE/BSE transaction charges - SEBI turnover fee recovered from their clients in addition to the brokerage charges - HELD THAT - The issue is no longer res-integra and the issue whether the NSE/BSE charges and SEBI turnover fee are liable for service tax has been decided consistently by this Tribunal in various judgments wherein it was held that the actual charges paid to NSE/BSE and SEBI fee and taking reimbursement from the clients is not liable for service tax. Reliance placed in the case of INDSES SECURITIES AND FINANCE LTD, SPAN CAPLEASE PVT LTD AND OTHERS VERSUS C.S.T. -SERVICE TAX - AHMEDABAD 2018 (2) TMI 569 - CESTAT AHMEDABAD . Appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Whether the appellant has to pay service tax on the NSE/BSE transaction charges and SEBI turnover fee recovered from their clients in addition to the brokerage charges.

Analysis:
The judgment delivered by the Appellate Tribunal CESTAT Ahmedabad, presided over by Hon'ble Mr. Ramesh Nair, Member (Judicial) and Hon'ble Mr. Raju, Member (Technical), addressed the issue of service tax liability on NSE/BSE transaction charges and SEBI turnover fee. The appellant's representative, Shri Uday Joshi, argued that the issue was settled by precedent judgments, specifically referencing the case of Span Caplease Pvt. Limited & others vs. CST, Ahmedabad. On the other hand, Shri K.J. Kinariwala, Assistant Commissioner (AR) for the Respondent, reiterated the findings of the impugned order.

Upon hearing both sides and examining the records, the Tribunal found that the issue was no longer res-integra. The Tribunal cited various judgments where it was consistently held that the actual charges paid to NSE/BSE and SEBI fee, along with taking reimbursement from clients, did not attract service tax liability. The decision cited by the appellant's counsel further supported their case. Consequently, the impugned order was set aside, and the appeal was allowed. The Tribunal's decision clarified the non-liability of service tax on NSE/BSE charges and SEBI turnover fee when reimbursed from clients, aligning with the established legal precedents in this matter.

In conclusion, the judgment provided a clear resolution to the issue at hand, emphasizing the settled legal position regarding the service tax liability on NSE/BSE transaction charges and SEBI turnover fee. The decision underscored the importance of consistent judicial interpretation in determining tax liabilities, ultimately favoring the appellant's position based on established legal principles and precedents.