2014 (11) TMI 583

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...., DR ORDER PER: R.K. Singh The appellants have filed this stay application along with their appeal No. ST/55457/2013-CU[DB] against Order-in-Original No. 96/ST/CHD-II/2012 dated 31.10.2012 in terms of which service tax demand of Rs. 51,34,094/- has been confirmed along with interest under Section 75 and penalties under Sections 77 and 78 of the Finance Act, 1994. 2. The facts, briefly ....

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....on and hence the same was not liable to service tax. They referred to the CBEC Circular No. 89/7.2006 dated 18.12.2006 which inter-alia states that:       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 i....

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....ry fee/levy, then in such cases, service tax would be leviable, if the activity undertaken falls within the ambit of a taxable service. 4. The appellants also referred to the judgement of Commissioner (Appeals) in the case of M/s. Municipal Council Samana Patiala (final order/stay order No. JAL-EXCUS-000-APP-24-25-14-15 dated 01.05.2014) wherein such bus adda charges were held to be not liable ....

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....ugh a careful reading of the said circular would reveal that it was referring to only such fees which are deposited in the Government account which is clearly not the case here. Further, though the Commissioner (appeals') orders do not constitute precedence nor are they binding on CESTAT, the fact that some Commissioner (Appeals) have actually held such bus adda fee as not liable to service tax cl....