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TMI Blog2018 (5) TMI 1463X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants have acted as sub-brokers for commodity trading. N/N. 3/2014-S.T. exempts service tax payable on the services provided by an authorized person or sub-broker to the member of a recognized association or a registered association in relation to a forward contract during the period from 10-9-2004 to 30-6-2012. Appeal dismissed - decided against Revenue. - ST/22378/2014-DB, ST/22375/2014-DB, ST/22376/2014-DB, ST/22380/2014-DB, ST/22379/2014-DB, ST/23882/2014-DB, ST/22381/2014-DB, ST/22374/2014-DB - Final Order No. 20366-20373/2018 - Dated:- 12-3-2018 - Shri S.S Garg, Judicial Member And Shri V. Padmanabhan, Technical Member For the Appellant- Shri Madhupsharan, Assistant For the Respondent- None Order Per : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 75/2014 178 to 186/2014 dt. 11.03.2014 01.04.2008 to 31.03.2009 63,965/- 3 ST/22376/2014 178 to 186/2014 dt. 11.03.2014 01.04.2008 to 31.03.2009 1,83,494/- 4 ST/22380/2014 178 to 186/2014 dt. 11.03.2014 10.09.2004 to 31.12.2008 10,05,575/- 5 ST/22379/2014 178 to 186/2014 dt. 11.03.2014 01.11.2005 to 31.03.2008 1,61,385/- 6 ST/23882/2014 178 to 186/2014 dt. 11.03.2014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o were exempt from service tax liability as they render services on behalf of the principal who discharges the service tax liability on the consideration received from customers for the rendering of services in relation to share-trading and commodity futures. Vide the Order-in-Original, the original authority concluded that the appellant is promoting and marketing the services provided by M/s. Geojit Financial Services and Geojit Comtrade Ltd. and hence classifiable under Business Auxiliary Service defined under Section 65(19)(vi) of the Finance Act 1994 which is a taxable service as per Clause (105) (zzb) of Section 65 of the Finance Act. On an appeal by the assessee before the Commissioner, the Commissioner allowed the appeal of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at these locations near potential customers. The appellants therefore, promotes or markets the electronic trading platform offered by M/s. Geojit Financial Services and M/s. Geojit Comtrade Ltd. and also provides service on behalf the client which is the outsourcing entity. Further, consideration for rendering these services is received exclusively from these two principles thus evidencing the recipient-provider relationship between them. The services rendered to investors are also in furtherance of this outsourcing transaction. 9. However, it also needs noting that sub-broker has a specific statutory status accorded by regulations of the SEBI, registration with SEBI, tri-partite contracts between investor, broker and sub-broker and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 in respect of services provided by an authorized person or sub-broker in relation to forward contract, the demand in respect of the same stands exempted. In view of the above, there can be no doubt that activities of sub-broker in relation to sale and purchase of securities and commodities are beyond the pale of taxability as business auxiliary service notwithstanding its stark resemblance to such service. 11. No evidence has been produced on behalf of the respondent to show that M/s. Geojit Financial Services had not discharged the tax liability on the entire brokerage collected from the investor. No evidence has been adduced to show that the appellants have received any consideration from M/s. Geojit Financial Services other than ..... X X X X Extracts X X X X X X X X Extracts X X X X
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