UNIQUE INVESTMENT CENTRE Vs. CCE

JUDGEMENT

(1.) HEARD both sides.

(2.) THE applicant challenges the Order -in -Appeal passed by the Commissioner (Appeals) on 10.10.2006. In the impugned order, the Commissioner has observed that the appellant had received remuneration from the broker on each transaction done through him which is a part of brokerage earned by the main broker from the sale/purchase of the securities of a client referred by the appellant sub broker.

(3.) ACCORDING to the learned Commissioner, the appellant has rendered taxable service in accordance with the provisions of Sub -clause (a) of Clause 105 of Section 65 of the Finance Act. 1994. The contention of the appellant is that the sub -brokers never deal with the client on their own and the main broker is authorized to enter into agreements with the clients (investor) and issue contract notes, account statement, receipts and delivery of cheques, recovery of taxes etc. Therefore, commission from the investor will be charged by the stock broker (main broker) and the broker paid a portion of such commission to the sub -broker for introducing clients to him.