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2016 (11) TMI 1293 - AT - Service TaxDemand - Stock Broker Services - Banking & Other Financial Services - Business Auxiliary Service - Held that: - no service tax will be leviable on transaction charges in the hands of the stock broker Banking & Other Financial Services - delayed payment charges - Held that: - delayed payment charges received by the stock brokers are not includible in taxable value as the same are not the charges for providing taxable services. Such charges are on account of delay in making payments by the service recipient to the service provider and are in the nature of a penal charge for not making the payment within stipulated time. Such amounts are not includible in the taxable value for charging Service Tax Business Auxiliary Service - incentive/ commission amounts received by the appellant towards services rendered as Registrar for IPOs - Held that: - Such amounts have been charged to service tax under a new service, "[registrar to an issue]" w.e.f. 01/5/2006. In the impugned order such charges have been levied to service tax under Business Auxiliary Service for the period prior to 01/5/2006. We find no justification for such demands. It is fairly well settled that when a new service is introduced from a particular date, the same activity cannot be charged to service tax prior to that date. The only exception could be if the new service is carved out of an existing service - the service came into service tax net only with effect from 1-5-2006 and a demand to levy the service tax retrospectively under other categories such as Business Auxiliary Service is not justified. Appeal allowed - decided in favor of appellant.
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