TMI Blog2018 (11) TMI 1383X X X X Extracts X X X X X X X X Extracts X X X X ..... in case, same that will certainly form the part of gross value charged by them for providing taxable service. In this regard, 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, the same need to be included in the taxable value as per the provision of Section 67 of the Finance Act, 1994. Accordingly, there is no merit in the appeal on this count and same is dismissed. CENVAT Credit - duty paying documents - Rule 9 (1) of the Cenvat Credit Rules - Held that:- Since the details contained in such documents h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and securities of the listed companies on behalf of various individual and institutional clients through stock exchange namely National Stock Exchange or Bombay Stock Exchange. The appellant collects the amount charged by the respective stock exchange and other statutory bodies from their clients on the transactions of purchases or sales of shares or securities undertaken by them for and on behalf of their clients. It has been the contention of the department that transaction charges collected by the appellant from their clients for providing stock broking services in connection with the sale or purchase of shares and securities. The appellants have failed to pay service tax on transaction charges received by from their clients them duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice Tax (Determination of Value) Rules, 2006. 3. We have also heard the Departmental Representative who has reiterated the findings, as mentioned in order-in-original. 4. Having heard both the sides the main issue before us for adjudication are following :- (i) whether the transaction charges recovered by the appellant from their clients for providing stock broking service of purchase and sales of the shares need to be included in the taxable value of service for charging service tax or not ; (ii) whether the Cenvat credit of ₹ 8,95,377/- + education cess of ₹ 16,643/- availed by the appellant on the strength of documents which are not approved documents as per the provisions of Rule 9 (1) of Cenvat Credit Rules is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility. In this particular case, it has been the contention of the appellant that so far as transaction charges are concerned, they have worked as a pure agents between their client and the concerned stock exchanges/statutory bodies and accordingly the transaction charges collected by them from their clients have been deposited as it is with the statutory bodies and therefore same cannot be included in the taxable value of the service tax. In this regard we have perused the guidelines which have been provided by National Stock Exchange in their Circular dated 7th November, 1998 :- It is hereby notified to all the Trading Members in the Capital Market Segment of National Stock Exchange of India Ltd. that with effect from 1st December, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ients, 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. 8. On the second question wherein Cenvat credits of ₹ 8,95,377/- + education cess of ₹ 16,643/- have been availed by the appellant on the documents which are not approved documents as per the provisions of Rule 9 (1) of the Cenvat Credit Rule. In this regard, we find that since the details contained in such documents has not been discussed either in the show cause notice or in the order-in-original it is very difficult to ascertain whether the documents on the strength of which appellants have ava ..... X X X X Extracts X X X X X X X X Extracts X X X X
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