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TMI Blog2018 (12) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... s as non-taxable amount. However it was observed that they were charging and collecting such amount in their billing / contract notes from their clients/ customers. Accordingly, the Services Tax remands of such NSE/BSE charges were proposed the same confirmed by the adjudicating authority. The Ld. Commissioner (Appeals) in the appeal filed by the appellant also upheld the demand confirmed by the Original Authority, therefore, the present appeals. 2. Shri. Jigar Shah, Ld. Counsel appearing on behalf of the appellant at the outset submits that the identical issue has been considered by this Tribunal in the appellants own case as well as in the other cases also, wherein, it was upheld that similar NSE/ BSE charges collected from the client of the Stock Broker need not to be imported in the gross value of Stock Broker. He place reliance on the following judgments. * Span Caplease Pvt Ltd Vs. CST Final Order A/12761-12788/2017 DATED 29.09.2017 * Intercontinental Consultants & Technocrats Pvt Ltd Vs. UOI 2013 (29) STR 9 (Del.) * UOI Vs. Intercontinental Consultants & Technocrats Pvt LTD 2018 (10) GSTL 401 (SC) * CST VS. Bhayana Builders (P) Ltd 2018 (10) GSTL 118 (SC) * Suchit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art of valuation of taxable services for charging service tax. Though, it was not argued by the learned counsel for the Department that Section 67 is a declaratory provision, nor could it be argued so, as we find that this is a substantive change brought about with the amendment to Section 67 and, therefore, has to be prospective in nature. On this aspect of the matter, we may usefully refer to the Constitution Bench judgment in the case of Commissioner of Income Tax (Central)-I, New Delhi v. Vatika Township Private Limited (2015) 1 SCC 1=2014-TIOL-78-SC-IT-CB wherein it was observed as under: "27. A legislation, be it a statutory Act or a statutory rule or a statutory notification, may physically consists of words printed on papers. However, conceptually it is a great deal more than an ordinary prose. There is a special peculiarity in the mode of verbal communication by a legislation. A legislation is not just a series of statements, such as one finds in a work of fiction/nonfiction or even in a judgment of a court of law. There is a technique required to draft a legislation as well as to understand a legislation. Former technique is known as legislative drafting and latter one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... those appeals which are accordingly dismissed. 7. In the result Revenues appeal is dismissed and the assesses appeals is allowed. Appeals are disposed as above." * Indses Securities & Finance Ltd Vs. CST 2018 (2) TMI-569-CESTAT-AHMEDABAD "9. The limited question of law involved in the present appeals is to be addressed is: whether the appellants-stock brokers are required to include NSE/BSE transaction charges, SEBI turnover fees, Stamp duty, Depository/Demat charges and Security Transaction charges in the value of brokerage and commission charges recovered from their customers/clients. The contention of the Advocates for the respective appellants is that these charges are collected separately and in accordance with various statutory Bodies Regulations and not retained by the stock brokers but deposited with the authorities concerned viz., Stock Exchanges, hence, such charges cannot form part of the taxable value as alleged by the Dept. The determination of the aforesaid question should not the same has been considered by way of judgments including M/s LSE Securities Ltd (supra) 12.1 Matters before us fall within the periods before 2001 and after 2001 but before 2004. When ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no scope provided by Section 67 of the Act to expend its width to have artificial measure of levy bringing a receipt by implication or inference running counter to the charging provision. 12.4 The scheme of? valuation of aforesaid service which was in force till 15- 7-2001 underwent amendment by Finance Act, 2001. The amending Act replaced Section 67 by Finance Act, 2001, prescribing levy of tax on the gross amount charged by service provider (stock broker) for the taxable service provided by him. Such aggregate charge was gross value. An explanation appeared in the amended section declaring that value of taxable service as the case may be shall include certain receipts prescribed by different clauses appearing under Section 67. Clause (a) is the relevant clause insofar as that relates to taxable service provided by stock broker and that is under consideration in these appeals. That clause states that aggregate of commission or brokerage charged by a broker on the sale or purchase of securities including the commission or brokerage paid by the stock broker to any sub-broker shall be liable to service tax. Thus, there is no extended meaning of measure of levy even by amended def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessable value of such service. Because tax is compulsory exaction, no subject shall be made liable without authority of law. To the extent authority is vested, only to that extent tax can be imposed. Commission or brokerage charged by stock broker are only liable to tax by express provision of law. Any other exercise of authority beyond that shall make that fatal. 15. The correct assessable value of taxable service usually is the intrinsic value of the service provided since service commands that value only and that should only be taxed without any hypothetical rule of computation of value of taxable service under Section 67 of the Act. The other receipts a stock broker makes are irrelevant for determination of the assessable value of taxable service provided by him. Thus the test is whether a receipt of stock broker is in the nature or commission or brokerage to levy service tax. Burden of proof failed to be discharged by Revenue to bring the receipts to charge 16. The appellants in these appeals received "turnover charges", stamp duty, BSE charges, SEBI fees and DEMAT charges contending that the same was payable to different authorities and claimed that the same is not taxab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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