RELIGARE SECURITIES LTD. Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) BOTH the appeals, one filed by the assessee and the other filed by the Revenue are being disposed of by a common order as they arise out of the same impugned order of the Commissioner, vide which he has confirmed the Service Tax demand of Rs. 26,91,58,904/ - (Rupees twenty six crore ninety one lakh fifty eight thousand nine hundred and four only) against the assessee along with the confirmation of interest and has imposed penalties of Rs. 10,000/ - under Section 77 and Rs. 28 lakhs under Section 78 of the Finance Act, 1994 upon the assessee. Revenue's appeal is against that part of the impugned order of the Commissioner, vide which he has dropped the demand of Rs. 70,34,801/ - (Rupees seventy lakh thirty four thousand eight hundred one only) in respect of the services provided by the appellants' sub -brokers located in Jammu & Kashmir to their clients of Jammu & Kashmir. We have heard Shri B.L. Narasimhan, ld. Advocate for the assessee and Mr. Govind Dixit, ld. Departmental Representative appearing for the Revenue.

(2.) THE appellants are a registered member of National Stock Exchange, Bombay Stock Exchange, Depository Participant with National Security Depository Ltd. and Central Depository Service (I) Ltd. They are providing, inter alia, services of stock broking and are registered with Service Tax Department.

(3.) THE appellants are making payments towards stock exchanges, made on behalf of their clients in advance, irrespective of the receipt of transacted amount. In cases, their clients made any delay in making payments to the appellants, they charged Delayed Payment Charges (hereinafter referred to as DPC, for the sake of brevity) from their clients, which is being done by making debit entries in the ledger maintained by the appellants.