AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2014 (11) TMI 927
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....l for the writ petitioner Mr. Poddar tells me that there is a 200 kilometre corridor in Assam where these tea plantations are situated. The area is disturbed. It is highly volatile. There is a constant threat of damage to the tea gardens, the establishments connected with them and their owners and staff from miscreants. Their acts of vandalism are often carried out with terrorist like precision. In those circumstances the consortium of owners of tea gardens approached the government of Assam for protection. This government realised that this threat from miscreants could not only cause immense financial loss to the tea plantation owners but could also be detrimental to the economy of the State. A force was created by the Assam Government. I....
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....s of this force. According to learned counsel for the respondents these personnel are nothing but private security guards who are provided by the State to the tea plantation owners for protection of their person and property. The controversy arises in this way. By a letter dated 20th November, 2013 the Superintendent of Service Tax Range 18 and 19 Division-I Kolkata wrote to the writ petitioner that the above service provided by the Assam government to the writ petitioner would be considered as a security service and to be more specific a support service exigible to service tax "in the hand of service receiver". The writ petitioner was directed to furnish their compliance report on the above issue. According to the writ petitioner, no se....
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....he service tax department dated 20th November, 2013 the nature of service rendered by the said force to the writ petitioner company was classified as 'support service". It is on this basis that the justification for claiming service tax was made. Mr. Poddar, learned senior advocate for the petitioner cites guidance notice 4.1.7 published by the department to explain the meaning of "support services" in the negative list of service. It is contained at pages 654-655 G.Sarangi's, Service Tax Manual published by Centax Publications Pvt. Ltd. 18th Edition 2012-2013. It is in the following terms: "4.1.7. What is the meaning of "support services" which appears to be a phrase....
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....wing and manufacturing area of the state [see list II entry1 of the 7th schedule to the Constitution of India. This part of maintenance of internal security obligations of the State in the tea plantation areas have been delegated by it to the AISF. Discharging sovereign functions by the state cannot be equated with providing support services by it. A State can never charge any tax for discharge of a sovereign function. Hence it cannot levy any tax for rendering of services by the AISF. This has been recognised by the said guidance note of the department, it was submitted. Mr. Poddar went to the extent of submitting that the arms that are entrusted with the members of this force are used by army personnel and are not available to an ordinar....
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....ntments to this force, its management, control, finance, discipline etc are regulated by the government is uncontroverted. That the nature of its function is to protect the tea plantations and the personnel working therein against unlawful acts is also uncontroverted. Therefore, prima facie there is every indication that the service rendered by this force is sovereign and hence not a "support service". In All Assam Tea Plantation Security Vs. The State of Assam and Ors. reported in (2003) 1 GLR 233 the Gauhati High Court was concerned with a representative action on behalf of the members of the tea plantation security force seeking regularisation of their service. While deciding that case Mr. Justice Ranjan Gogoi held that this force perfor....
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....called for duty have the same powers, privileges and protection as available to a member of the police force". That the maintenance of the security of the state was a sovereign function was emphasised in the judgment of the Supreme Court in M/s Bakhtawar Singh Bal Kishan Vs. Union of India reported in (1988) 2 SCC 293. The value of sovereign functions of a state is not taxable in the hands of the citizens. Support services rendered by the government are taxable. According to the government this kind of service received by the writ petitioner is classifiable as a "support service". Hence, whether the service in question is taxable or not is a question of fact. The service tax department is not bound by the above finding of fact by the Gauh....