Superintendent of Police's Security Service Payments Exempt from Service Tax

The Appellate Tribunal CESTAT DELHI held that the amount received by the Superintendent of Police for providing Security Services is not subject to service tax as it is deposited to the State Government's credit, protected under Article 285 of the Constitution of India. The service tax demand of Rs. 1,10,96,007/- along with interest for the period May 2006 to March 2012 was stayed pending appeal.

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The Appellate Tribunal CESTAT DELHI ruled that the amount received by the Superintendent of Police for providing Security Services is not liable to service tax as it is deposited to the credit of the State Government, which cannot be taxed by the Central Government as per Article 285 of the Constitution of India. The service tax demand of Rs. 1,10,96,007/- along with interest for the period May 2006 to March 2012 was stayed during the appeal.

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