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2023 (10) TMI 744 - AT - Service TaxNon-payment of service tax - transaction fees/ charge recovered from their customers, but applicable duty not discharged - HELD THAT:- The transaction charges are payable by the Stock Brokers in terms of the Regulations issued by SEBI and these are not any fee or statutory levy that is payable by the customers of the Stock Brokers. In effect, the Stock Broker/ Appellants are recovering the fee or charges payable by them to SEBI for the conduct of business and are paying the same to SEBI. It is not the case of the appellants that the said transaction charges are payable by the ultimate customers and that as the Stock Broker Agent, they are paying the same on behalf of the customers. Therefore, these charges recovered from the customers are in the nature of consideration towards the taxable service rendered by the appellant as far as the customers are concerned. The Tribunal has already gone into the issue of the includability of transaction charges in the service tax in the case of M/S SRIRAM INSIGHT SHARE BROKERS LTD. VERSUS CST, KOLKATA [2018 (11) TMI 1383 - CESTAT KOLKATA] where the Tribunal has found the legal responsibility of the payment of transaction charges was of the trading members (in this case apparently the appellant) and as levy of transaction charges from the concerned stock exchange is on the appellant and since this liability have been passed on by him on their clients, we are of the view that same need to be included in the taxable value as per the provision of Section 67 of the Finance Act, 1994. Accordingly, we find that there is no merit in the appeal on this count and same is dismissed. The appellant has not made out any case in their favour - the impugned orders do not require intervention - Appeal dismissed.
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