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TMI Blog2012 (8) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration and paid service tax on the brokerage charged by them in connection with sale and purchase of securities. In course of audit of their records for the period October, 2002 to March, 2007, the department raised the following objections :- (a) They had received an amount of Rs. 12,20,298/- from sub-broker as penalty charges in excess of the charges paid to the Bombay Stock Exchange during the period from October, 2002 to March, 2007. The Department was of the view that this amount should be treated as extra consideration for the taxable service being provided by them and should be charged to service tax and on this basis, the department was of the view that the service tax of Rs. 1,29,763/- was payable by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ong with stay application has been filed. 3. Heard both the sides in respect of stay application. 4. Shri Jatin Mahajan, Advocate, ld. Counsel for the appellants pleaded that the appellants are not providing leased circuit services which is chargeable to service tax under Section 65(105)(zd) read with Section 65(111) of the Finance Act, 1994, that this service, as is clear from the provisions of Section 65(105)(zd) is provided to a subscriber by a telegraph authority in a relation to a lease circuit, that the Appellant is not a telegraph authority and hence, there is no question of leased circuit services being provided by them, that as per Section 65(111) of Finance Act, 1994, the term "telegraph authority" has the same meaning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the appellant have to be treated as provider of leased circuit services. However, on going through the definition of "leased circuit service" as given in Section 65(105)(zd) read with Section 65(111) of the Finance Act, 1994, it is clear that this service is provided by telegraph authority or by a person licensed under Section 4(1) of the Indian Telegraph Act. There is no dispute that the appellant are not telegraph authority or a person licensed under Section 4(1) of the Indian Telegraph Act. We are, therefore, of the prima facie view that V-SAT connectivity charges being recovered by the appellant from their customers and sub-brokers cannot be treated as charges for lease circuit services. In view of this, the requirement of pre-deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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