https://www.taxtmi.com/caselaws?id=750784 CESTAT Bangalore held that a Karnataka State Government department collecting life insurance premiums from employees under a welfare scheme performs a sovereign function exempt from service tax, following Board circular and tribunal precedent. However, service tax on renting immovable property was confirmed with interest, though penalties were dropped citing SC precedent in Krishi Upaj Mandi Samiti case regarding conflicting legal interpretations. The department did not contest the renting service tax liability. Appeals were disposed with modified orders dropping life insurance service tax demands and penalties on property rental while confirming the rental service tax with interest. en-us Thu, 14 Mar 2024 00:00:00 +0530 Fri, 29 Mar 2024 12:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=750784 CESTAT Bangalore held that a Karnataka State Government department collecting life insurance premiums from employees under a welfare scheme performs a sovereign function exempt from service tax, following Board circular and tribunal precedent. However, service tax on renting immovable property was confirmed with interest, though penalties were dropped citing SC precedent in Krishi Upaj Mandi Samiti case regarding conflicting legal interpretations. The department did not contest the renting service tax liability. Appeals were disposed with modified orders dropping life insurance service tax demands and penalties on property rental while confirming the rental service tax with interest. Case-Laws Service Tax Thu, 14 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=750784