9911796707
TMI Blog2008 (4) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... t, for the Appellant. Dr. M.K. Rajak, SDR, for the Respondent. [Order]. - As per facts on record, the proceedings were initiated by way of issuance of show cause notice under Section 11D for recovery of an amount of Rs. 2,69,250/- on the ground that though the said amount was being recovered by the appellant from their customer recovering the same as service tax in respect of the services being provided by them as stock-broker, the same was not being deposited with the Revenue. The said proceedings were dropped by the original adjudicating authority on the finding that the appellants cannot be held to be a stock-broker, inasmuch as, they were sub-broker and were not liable to Service tax, as such, the amount of Service tax collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "taxable service" means any service provided, - (a) to an investor, by a stock-broker in connection with the sale or purchase of securities listed on a recognized stock exchange;" Records also suggest that the said certificate has not been suspended or cancelled and remained in force as valid even after the party registered themselves as 'sub-broker' with the SEBI in the year 2003. It is evident from the sample Invoices raised by the party on their customers that the invoices reflect SEBI Regn. Certificate No. INB-190628414, which they are holding in the capacity of a Stock-broker only. The party has explained the scope of the term of stock-broker known in the business circles under their letter dated 27-2-2007 which state that the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve action against the unit, for defrauding the customers. His decision was basically for the reason that the unit was not liable to pay Service Tax being a sub-broker only, and under Section 11D the person who is liable to pay duty and has collected any amount in excess of the duty assessed or determined representing duty of Excise (here Service tax) is to be paid to the Central Government. The party collected Service tax from their customers but did not deposit with Central Government and hence the said amount so collected from customers is required to be paid to the credit of the Central Government under section 11D of the Central Excise Act, 1944." 4. The above finding of Commissioner that the appellant was registered as stock-broker ..... X X X X Extracts X X X X X X X X Extracts X X X X
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