𝗖𝗘𝗦𝗧𝗔𝗧 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗼𝗻 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗗𝗲𝗹𝗮𝘆𝗲𝗱 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗖𝗵𝗮𝗿𝗴𝗲𝘀 📢 The Tribunal ruled:

"The payments made by the appellant to stock exchanges on behalf of their clients for delayed transactions cannot be considered as consideration for services rendered, and thus are not subject to service tax."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s Almondz Global Securities Ltd., a registered member of Bombay Stock Exchange and National Stock Exchange, engaged in trading of securities.

𝗜𝘀𝘀𝘂𝗲 : A show-cause notice dated 19.04.2010 was issued, demanding service tax on transaction charges and delayed payment charges (DPC) received from clients, along with interest and penalties, for not discharging service tax liability.

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: The appellant contended that the transaction charges were collected from clients and remitted to the stock exchanges, and therefore not taxable. Similarly, delayed payment charges were imposed on clients who delayed payments for their transactions.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal held that the transaction charges collected were not related to a taxable service provided by the appellant but were simply passed on to the stock exchange.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s Almondz Global Securities Ltd. vs. The Commissioner of Central Excise (Appeals), Delhi-IV 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 29 February 2024 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 60244 of 2013

📜 This ruling clarifies that charges related to transaction delays and non-service-related receipts are not subject to service tax.