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TMI Blog2018 (5) TMI 1222X X X X Extracts X X X X X X X X Extracts X X X X ..... , wherein it has been held that turn over charges etc. cannot be included in assessable value for the purpose of taxation inasmuch as, the same are recovered from investors to make payment as per the SEBI guide lines. While interpreting the phrase “for such service” used in Section 67 of the Act, the Hon’ble Supreme Court, in the case of Union of India and Anr. vs. Intercontinental Consultants & Technocrats Pvt. Ltd. [2018 (3) TMI 357 - SUPREME COURT OF INDIA], have held that the said phrase to be strictly construed, to include only the amount of consideration paid for providing the taxable service and all expenses to be excluded for consideration of the gross value. Appeal allowed - decided in favor of appellant. - ST/59207, 60449 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional charges/ fees collected by the appellants should form part of the gross value under Section 67 of the Act and the appellants should be liable to pay Service Tax on such charges / fees. Accordingly, the show cause proceedings were initiated against the appellants, which culminated into the adjudication orders, in confirming the adjudged demands against the appellants. On appeal filed against the adjudication orders, the ld. Commissioner (Appeals) vide the impugned orders has upheld the demands confirmed in the adjudication orders. Hence, these appeals were filed before the Tribunal. 3. Heard both sides and perused the records. 4. The facts are not under dispute that the appellants had recovered the actual turn over charges / tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived towards consideration in the nature of commission or brokerage of sale or purchase of securities. While burden of proof was on Revenue to establish that such receipts were in the nature of commission or brokerage or had the characteristic of such nature that was failed to be discharged. The character of commission or brokerage is remuneration for the service of stock broking provided by a stock broker to investors. Therefore, aforesaid charges realized by appellants were not being of commission or brokerage are not taxable and shall not form part of gross value of taxable service. On merit, all the appellants succeed on the fundamental principles of taxation. Therefore, other contentions on merit made in respective appeals are not co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uation as that amount is not calculated for providing such 'taxable service'. That according to us is the plain meaning which is to be attached to Section 67 (unamended, i.e., prior to May 01, 2006) or after its amendment, with effect from, May 01, 2006. Once this interpretation is to be given to Section 67, it hardly needs to be emphasised that Rule 5 of the Rules went much beyond the mandate of Section 67. We, therefore, find that High Court was right in interpreting Sections 66 and 67 to say that in the valuation of taxable service, the value of taxable service shall be the gross amount charged by the service provider 'for such service' and the valuation of tax service cannot be anything more or less than the consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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