Sovereign police deployment seen as prima facie non-taxable security service, justifying waiver of pre-deposit and stay.

Deployment of additional police force by Mumbai Police under the Mumbai Police Act, 1951 was treated as prima facie a statutory and sovereign function connected with maintenance of peace, public order and law and order. The fact that the charges were credited to the Consolidated Fund of the State supported that characterisation, and the question whether the activity could still fall within taxable security agency services was regarded as a triable issue. On that basis, the appellant was found to have made out a strong prima facie case, and unconditional waiver of pre-deposit with stay of recovery was granted.

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Issues: Whether the deployment of additional police force by Mumbai Police under the Mumbai Police Act, 1951 was prima facie a sovereign/statutory function outside the scope of Security Agency Services for the purpose of waiver of pre-deposit and stay of recovery.

Analysis: The provisions relating to deployment of additional police force indicated that the activity was connected with maintenance of peace, preservation of order and law and order, and the charges collected were credited to the Consolidated Fund of the State. These features supported the view that the activity was statutory and sovereign in nature. The issue whether such services could nevertheless be treated as taxable security services was considered a triable issue, and the cited Tribunal and High Court decisions also supported the appellant's prima facie position.

Conclusion: The appellant established a strong prima facie case for interim relief, and unconditional waiver of pre-deposit with stay of recovery was granted.

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