LAWS(CE)-2009-6-18

ANAGRAM CAPITAL LTD. Vs. COMMISSIONER OF SERVICE TAX

Decided On June 22, 2009
Anagram Capital Ltd. Appellant
V/S
COMMISSIONER OF SERVICE TAX Respondents

JUDGEMENT

(1.) THE prayer in the application is to dispense with the condition of pre -deposit of service tax of Rs. 52,01,964 and penalty of equal amount imposed under Section 78 of the Act along with the penalties imposed under Section 76 of the Act.

(2.) AFTER hearing both the sides duly represented by Shri P.M. Dave, learned advocate appearing on behalf of the appellant and Shri S.K. Mall, learned SDR, appearing on behalf of the revenue, we find that the dispute in the present appeal relates to the charges made by the appellant who is engaged in providing services of stock broker, to National Stock Exchange (NSE) or SEBI. It is the appellant's contention that such NSE or SEBI charges are made by the National Stock Exchange and are paid by them to National Stock Exchange and they merely recovers the same as an agent from their customers. As such, no service tax can be levied on the same.

(3.) ASSAILING the above finding, the learned advocate has submitted that NSE charges were subsequently placed under the Service tax with effect from May 2008 and NSE has started paying the service tax on the same. The said amount cannot be again taxed in the hands of the appellant. He further submits that, as held by the Tribunal in number of cases -Board of Control for Cricket in India v. CST : [2007] 9 STT 399 (Mum. - CESTAT), any service which has been made liable to tax subsequently, cannot be held to be taxable under some other category prior to the date of inclusion. As such, he submits that the demand of service tax on the NSE transaction charges for the period 1 -4 -2003 to 31 -3 -2007, when the NSE charges have been held liable to tax with effect from May 2008, cannot be upheld.