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TMI Blog2018 (2) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... ted transaction charges from their customers on the value of purchase and sale of the securities from April 2004 to June 2007 amounting to Rs. 81,37,357/-. Hence, a SCN dated 27.11.2007 was issued to the appellants interalia proposing to demand service tax of Rs. 4,64,686/- with interest thereof and also imposition of penalties under various provisions of law. In adjudication, these proposals were confirmed and in addition, penalties were also imposed under Section 76 and 78 of the Finance Act, 1994. On appeal, penalty under 76 was set aside, however, the rest of the order of the original authority was upheld by the Commissioner (Appeals). Hence, this appeal. 2. Today when the matter came up for hearing, Ld. Advocate Ms. Radhika Chandrasek ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g.) b. LSE Securities Ltd. Vs. CCE, Ludhiana 2013 (29) STR 591 (Tri.-Del.) 3. On the other hand, Ld. AR, Shri R. Subramaniyam, AC supports the impugned order. He draws our attention to the finding of the Commissioner (Appeals) that the amounts collected by the appellant as transaction charges is nothing but consideration received by them, which is therefore required to be added in the taxable value and the liability to pay service tax will definitely arise. 4. Heard both sides and have gone through the facts. 5.1 We find merit in the arguments of the Ld. Counsel. It cannot be nobody's case that the transaction charges are charged by the appellants on the clients. It is evident that these charges are required to be paid by the clien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansaction charges issued from National Stock Exchange of India Ltd. for year 1999-2003 was furnished. Further he invited our attention to Section 67(a) of the Finance Act which deals with valuation of taxable services in relation to service provider by the stock broker. In terms of the above provisions, the value of taxable service in relation to service provided by a stock broker, shall be the aggregate of the commission or brokerage charged by him on the sale or purchase of securities from the investors and includes the commission or brokerage paid by the stock broker to any sub-broker. The handling charges collected from the investors cannot be called as brokerage or commission. Similarly, the amounts collected towards transaction charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of taxable services in respect of a stock broker will not include transaction charges and handling charges. Therefore there is no merit in the impugned order. Hence we allow the appeal with consequential relief. The same ratio has been relied in LSE Securities Ltd. (supra). The relevant portion of the said decision is reproduced as below:- "16. The appellants in these appeals received turnover charges, stamp duty, BSE charges, SEBI fees and DEMAT charges contending that the same was payable to different authorities and claimed that the same is not taxable. But Revenue taxed the same on the ground that such receipt by stock broker was liable to tax. Revenue failed to bring out whether the turnover charges and other charges in dispute in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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