2011 (11) TMI 307

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....1.07.1994 in so far as the petitioner is concerned as ultra vires, arbitrary, unreasonable and to set aside the order 'dated 07.08.200 passed by Customs, Excise and Service Tax Appellate Tribunal, Bangalore in Appeal No. ST/01/2003 confirming the order in appeal No. 647/2002 dated 24.10.2002 vide Annexure-B and the order dated 06.04.2009 passed by the Tribunal in Appeal No. ST/64/2006 confirming the order dated 29.12.2005 passed in No. 12/2005-ST(B-III) by the Commissioner or Central Excise (Appeals), Bangalore vide Annexure-E are intra vires, violation of the principles of natural justice, illegal and liable to be quashed. 2. The learned Counsel appearing for the petitioner relies on the circular issued by the Government of India be....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e same is ultimately deposited into the Government Treasury. A doubt has arisen whether such activities provided by a sovereign/public authority required to be provided under a statute can be considered as 'provision of service' for the purpose of levy of service tax. 2. The issue has been examined. The Board is of the view that the activities performed by the sovereign/public authorities under the provision of law are in the nature of statutory obligations which are to be fulfilled in accordance with law. The fee collected by them for performing such activities is in the nature of compulsory levy as per the provisions of the relevant statute, and it is deposited into the Government treasury. Such activity is purely in public int....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nce Department are the holders of registration under Section 3 of the Insurance Act, 1938 carrying on General Insurance Business (non-life insurance) since 1st July 1946. The petitioner is engaged in Insurance Business in respect of the vehicles:  (i)  owned by the Government Departments and commercial concerns (ii)  vehicles in which the Government has a financial interest and vehicles for the purpose of which the Government has advanced money. 5. The Government of India imposed levy of service tax inter alia on 'General Insurance' with effect from 01.07.1994. The person carrying on General Insurance Business is the person liable to pay service tax. 6. Section 69(1) of the Finance Act, 1994 requires every....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of insurance and are holding registration under Section 3 of the Insurance Act, 1938. Therefore, they become service providers as per Section 65 of the Finance Act. In terms of notification No. 2/94-ST dated 28.06.1994, petitioner was treated as liable to pay service tax under the category of general insurance. There is no exemption available for the petitioner or for the business under the State Government vehicles. Therefore, all the three authorities have concurrently held that the petitioner is liable to pay tax and levy of interest was upheld. 9. It is in this context, the learned Counsel for the petitioner contends that the said order is contrary to the aforesaid circular and seeks for setting aside of the same. 10. A careful p....