TaxTMI 
TaxTMI 
2007 (10) TMI 137
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....f Rs.1.90crores and Rs.100 per day under Section 76 of the Finance Act, 1994 and Rs.1000/- under Section 77 of the Finance Act, for their failure to furnish the ST-3 returns. 2. The allegation of the Revenue is that the appellant being a Chief Electrical Inspector to Government of Karnataka who are engaged in the activity of providing taxable services under the category of "Technical Inspection and Certification" services, as defined under Section 65(108) of the Finance Act, 1994 and that they have failed to register themselves and discharge the Service Tax for the period noted supra. 3. The appellant's contention has been that they are one of the State Government Departments under the administrative control of Department of Energy, G....
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....ty performed by State functionaries and demands were set aside by dismissing the Revenue's appeal in the case of CC & CE v. CMC Ltd. - 2007 (7) S.T.R. 702 (Tri.-Bang.). The Bench relied on the Board's Circular No. 141 /52/95-CX dated 14-8-95 and No. 195/20-CX dated 3-4- 96. The Bench also relied on the ruling rendered in the case of CCE, Indore v. Ankit Consultancy Ltd. - 2007 (6) S.T.R. 101 (Tribunal-Delhi) which upheld the contention that when the Government is performing its sovereign activity in terms of the legislation, then the same cannot be brought under the purview of the service tax. 4.1 The learned Counsel filed written submission in which these points have been taken and particularly pointed out to Circular dated 18-12-....
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....ue has proceeded on the ground that these activities come under the heading of "Technical Inspection and Certification Services". This is contested by the appellant on the ground that the activity has to be performed in terms of Electricity Act and the Government Department has to carry on this activity as a sovereign function and the activities of Government performed as a statutory sovereign function cannot be subject matter for levy of Service Tax. This plea has been rejected by the lower authorities including the Circular issued by the department clarifying that statutory functions performed by State Government cannot be subject matter for levy of Service Tax. The plea made by a similar assessee has been accepted in the case of CPRI (su....