Order Date – 10 January 2023

Parties: Saurin Investments Private Limited Vs C.S.T.-Service Tax – Ahmedabad

 Facts –

• The Appellant, Saurin Investments Private Limited, had paid NSDL/CSDL charges to the depositories. The same is recovered by the appellant from their clients. The appellant had not included the said amounts in the assessable value for the purpose of payment of service tax.

Issue – 

• Whether NSDL & CSDL charges are to be included in assessable value for the purpose of service tax by the appellant?

Order –

• The Tribunal held there has been consistent stand of the tribunal that these charges being statutory charges as per SEBI Rules should not be included for the purpose of service tax.
• It was held the tribunal in the case of M/s. KUNVARJI FINSTOCK PVT. LTD.- 2018 (12) TMI 344- CESTAT AHMEDABAD and in the case of M/s. INNOVATIVE SECURITIES PVT. LTD.- 2018 (11) TMI 1473- CESTAT AHMEDABAD that the allegation of the department that the demat charges collected by the brokers are banking and financial service, hence taxable, also devoid of merit in as much such charges are collected by the Appellant, and paid to the depository participants viz. CDSL/NSDL who are authorized to levy such charges under the Depositories Act, 1996. Thus, in view of the aforesaid precedent, we do not find merit in impugned orders and accordingly set aside.
• Hence the appeal is allowed.