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TMI Blog2017 (9) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... he main contractor were to enter into an agreement with mutual fund companies to explore investment in mutual funds, corporate finance, portfolio management services, IPO shares and bonds or any other financial products by prospective investors, for the said companies. Then on, the applicant, alongwith the main contractor were to operationalize the said agreement. The mutual fund companies paid the commission for the said activities to main contractor on which the service tax liability was duly discharged. The main contractor then passed some of his share of commission received to the applicants. Department issued show cause notice for demand of service tax on the commission received by the applicants from main contractor. 3. The learned A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration as a sub-broker or a person registered as such under SEBI Act 1992 read with the regulations made thereunder, shall be called as stock-broker. So also there is no dispute that in terms of Section 65(105)(a) of Finance Act, 1994 services provided to any person by a sub-broker or stock broker in connection with the sale or purchase of securities listed on a recognized stock exchange shall be taxable service from the aforesaid date. So also, a sub-broker who is registered or has made an application for registration as such under SEBI Act, 1992, is permitted to provide similar service as provided by a stock broker. The service so provided becomes taxable service under Finance Act, 1994 w.e.f. 10-9-2004. A sub-broker is thus liable to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case and subject to verification of evidence as well as rules made under the law w.e.f. 10-9-2004. No set off is permissible prior to this date when sub-broker was not within the fold of law during that period. 10. In all the three references before us, it would be proper to send the matter back to the original authority, without being sent to the concerned Benches, to verify as to whether the stock-brokers have paid service tax on behalf of the sub-brokers and if so, reduce the demand on sub-brokers to that extent and pass fresh orders, granting fair opportunity of hearing to the sub-brokers. All the appeals are allowed by way of remand". 7. Further, I find that as issue involved in the matter has placed before the Larger Bench of this T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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