TMI Blog2008 (6) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri B. Bhattacharjee, Advocate, for the Appellant. Shri K.P. Singh, SDR, for the Respondent. [Order per: Chittaranjan Satapathy, Member (T)]. - Heard both sides. The adjudicating Commissioner has confirmed the demand of service tax and education cess amounting to Rs. 51,83,237/- and Rs. 82,509/- respectively on the appellants on the ground that the additional amount collected by the appellants from their clients as "transaction charge" is part of service charges and this amount cannot be excluded from the gross value of service for the purposes of computing service tax. He has also demanded interest and imposed penalty on the appellants. In addition, he has ordered for reversal of Cenvat Credit amounting to Rs. 8,95,377/- as in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid Circular makes it very clear that the transaction charges are payable by the stock brokers who are Trading Members of the stock exchanges and the amounts are dependent on such Members' turnover. As such, the amount is neither payable by the clients nor is relatable to the clients' turnover etc. The transaction charge is, therefore, prima facie, not an amount to be paid by the clients of a stock broker. Hence, there is no question of reimbursement of such amount by the clients. We are, prima facie, satisfied that whatever amounts the appellants have received additionally from their clients, are only part of service charges and hence the same is required to be taxed at the hand of the appellants as has been done by the adjudicating author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rges or that the same is payable by the Trading Members of the Stock Exchanges according to their turnover. Hence, we are, prima facie, unable to apply the ratio of the said decision to the case of the present appellants. Prima facie, the transaction charges which are not required to be paid by the clients of the appellants, cannot be held to be reimbursible amounts or excludible from service charges. 6. After considering the submissions from both sides in the course of hearing, we did not find this to be a fit case for complete waiver of pre-deposit. At this stage, Shri B. Bhattacharjee, ld. Advocate for the appellants volunteers to pre-deposit an amount of Rs. 15.00 lakhs (Rupees fifteen lakhs). Accepting the offer, we direct the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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