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2023 (9) TMI 413 - AT - Service TaxNon-payment of service tax - NSDL and CSDL fee paid to Depositories - tax on reverse charges basis on the expenses reimbursed to the representative liaison offices located outside India - delayed payment charges - services rendered to Jammu and Kashmir clients through its sub brokers in Jammu and Kashmir - Inadmissible CENVAT Credit on account of medical insurance of the employees of the respondent - HELD THAT:- It is true that the issue involved has been decided by the Tribunal in the aforesaid decisions and it has been held that the statutory charges such as NSDL and CSDL fee collected by the Depository Participants from customers and deposited with the Depositories (NSDL and CSDL) are not susceptible to service tax. These charges have a nexus or connection with the depository services and the respondent is not benefited out of collection of such fees as such fees are collected and deposited with the depositories. This is what has been held by the Tribunal in SAURIN INVESTMENTS PRIVATE LIMITED VERSUS C.S.T. -SERVICE TAX – AHMEDABAD [2023 (1) TMI 454 - CESTAT AHMEDABAD] and LSE SECURITIES LTD. VERSUS CCE [2012 (6) TMI 364 - CESTAT, NEW DELHI]. It is not possible to accept the contention advanced on behalf of the department that the circular dated 23.08.2007 is retrospective in nature. The said Circular supersedes all the past Circulars, clarifications and communications on all technical issues. The said Circular brought certain transaction within the ambit of the service tax - the Circular dated 23.08.2007 is oppressive in nature and it is a settled principal of law that an oppressive Circular should be given only prospective effect. Reimbursement of the expenses incurred by the representative offices located outside India - HELD THAT:- The reimbursement of the expenses incurred by the representative offices located outside India with respect to rent, professional services, salaries of employees can by no stretch of imagination be equated as consideration to any service rendered to the respondent by the representative offices. Therefore, the reimbursements made to representative offices located outside India is not leviable to service tax. The Commissioner has relied upon the decision of the Tribunal in M/S TECH MAHINDRA LTD., MILIND KULKARNI VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE - I [2016 (9) TMI 191 - CESTAT MUMBAI] to drop the demand. It is not the contention of the department that the said decision does not cover this issue and all that has been contended is that it should not have been relied upon by the Commissioner since notice has been issued by the Supreme Court in the Civil Appeal filed by the department. This contention of the learned authorized representative of the department cannot be accepted. There is no merit in the appeal. It is, accordingly, dismissed.
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