Statutory levy for industrial estate amenities is not taxable consideration when collected to discharge mandatory public functions.

Service charges collected by a statutory corporation for maintaining, managing and repairing industrial estate amenities were treated as a compulsory levy for discharging statutory obligations, not as consideration for a taxable management, maintenance or repair service. Roads, water supply, street lighting and drainage were part of the corporation's statutory functions under the governing industrial development law, so the collections did not have the character of taxable value for service tax. The issue had already been decided in the appellant's own case and the earlier view was accepted by the Board, supporting the conclusion that the levy was not sustainable.

---

---

Issues: Whether the service charges collected by the statutory corporation for maintenance, management and repair of industrial estate amenities were liable to service tax under the category of management, maintenance or repair service.

Analysis: The amenities in question, including roads, water supply, street lighting and drainage, formed part of the corporation's statutory functions under the governing industrial development law. The charges were collected for discharging those statutory obligations and were treated as a compulsory levy rather than consideration for a taxable service. The issue had already been decided in the appellant's own case, and the earlier view was accepted by the Board.

Conclusion: The levy was not sustainable and the issue was decided in favour of the assessee.

Ratio Decidendi: Where a statutory corporation collects charges as a compulsory levy for performing its statutory obligations in relation to public amenities, such collections do not amount to taxable consideration for service tax purposes.

---