TMI Blog2018 (9) TMI 1716X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that:- All these credits relate to the period prior to 01.04.2011, only after which date, the definition of ‘input service’ has been made narrowed and certain exclusions also included in the definition - the issue decided in the case of CCE Nagpur Vs Ultratech Cement Ltd. [2010 (10) TMI 13 - BOMBAY HIGH COURT], where it was held that the definition of "input service" is very wide and covers not only services, which are directly or indirectly used in or in relation to the manufacture of final products but also includes various services used in relation to the business of manufacture of final products, be it prior to the manufacture of final products or after the manufacture of final products - credit allowed. CENVAT credit - duty pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % / 0.0025% of total value of transaction which amount was paid to the stock exchange. Further, on verification of cenvat documents for the year 2004-05 to December 2008, it appeared that assessee had availed ineligible credit of service tax paid towards employees insurance, food charges and travelling expenses which are not used in providing the output services. It was also noticed that assessees were availing credit on debit notes raised by an associate company M/s. Cholamandalam DBS Finance Ltd. (CDFL, for short), who share the common expenses such as car parking expenses, water and electricity expenses, coffee and stationery expenses etc. with the assessee. Hence a show cause notice dt. 17.04.2009 was issued proposing demand of an amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the obligation of collecting such transaction charges on the stock brokers; that only because of this the charges are passed on by the assessee and collected from their clients; that the bills are sent by the stock exchanges to the stock brokers on monthly basis and payments are debited electronically; that hence the transaction charges levied by stock exchanges cannot be taken as income of the stock broker; that the transaction charges has no relevance with the number of CTCL connections and are not levied on the basis of such activity. 3.2 In respect of the allegation of wrong availment, assessee has argued that all the impugned input services like employees insurance, travelling expenses etc. are having direct nexus with their outpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... handling of scrips and certificates. The handling charges were collected from certain investors/clients. In respect of speculative transactions, no handling charges were collected from the investors/clients as there was no handling of scrips and certificates. We are convinced that the handling charge is not in the nature of commission or brokerage for purchase of securities. They are incurred in connection with the delivery of scrips. In fine, we hold that the value 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 ratio of First Securities Pvt. Ltd. (supra) was follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants succeed on the fundamental principles of taxation. Therefore, other contentions on merit made in respective appeals are not considered in this order. The same ratio was followed by Tribunal in a recent decision in the case of Mohak Commodities Pvt. Ltd. Vs CCE Jaipur 2018 (100 G.S.T.L. 316 (Tri.-Del). 5.2 In the circumstances, following the same ratio, we have no hesitation in upholding the decision of lower appellate authority and that such transaction charges cannot form part of the taxable value. 5.3 Coming to the second issue concerning eligibility of certain input service credit, though the disputed credits relate to input services like employees of the insurance, food charges, subscription, books / periodicals and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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