2017 (12) TMI 1309

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....inst the Police Department on the basis of the view entertained by revenue that the police department has provided Security Agency Service Covered under Section 65 (105) (w) read with Section 65 (94) of the Finance Act, 1994. 2. The brief facts of the case are summarized below:- (i) Superintendents of Police of Ghaziabad in the State of Uttar Pradesh is alleged to have been engaged in providing Security Agency Services covered under Section 65 (105)(w) of Finance Act, 1994 without having the registration for the services. As per Section 65(94) of the Finance Act, 1994, Security Agency means any person engaged in the business of rendering services relating to the security of any property, whether movable or immovable, or of any person, in....

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....o public at large, was providing Security Agency Services in relation to property as well as personal security for a consideration. The Central Board of Excise and Customs, New Delhi has also clarified the issue of taxability in respect of services provided by public authorities vide Circular No.89/7/2006-ST dated 18.12.2006 that: "activities assigned to and performed by the sovereign / public authorities under the provisions of any law are statutory duties. The fee or amount collected as per the provisions of the relevant statute for performing such functions is in the nature of compulsory levy and are deposited in the Govt. Account. However, if a sovereign or public authority provides a service, which is not in the nature of statutory a....

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....as been clarified that no service tax would be payable if all the following conditions are satisfied:- (a) Sovereign / public authorities perform duties which are in the nature of statutory & mandatory obligation to be fulfilled in accordance with the law. (b) The fee collected should be levied as per the provision of relevant law. (c) The amount collected is to be deposited into government treasury. In the case of the State Police Department, all the aforesaid conditions are duly satisfied and hence it is clear that the activity in question squarely falls within the corners of the department circular and hence the impugned demand is unsustainable in terms of the Department s own clarification. (v) The Adjudicating Authority has gro....