TaxTMI 
TaxTMI 
TaxTMI 
2021 (7) TMI 195
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....charges some amounts. Revenue was of the opinion that this provision for providing the security and collection of a consideration amounts to rendering "security agency service" as per Section 65(105)(w) of the Finance Act, 1994 read with Section 65(94). These Sections read as follows: "65(95)" 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 any manner and includes the services of investigation, detection or verification, of any fact or activity, whether of a personal nature or otherwise, including the services of providing security personnel; The taxable service in relation to a 'security agency' is defined in Section 65(105)(w) of the Finance Act as under: "Taxable Service" means any service provided or to be provided to any person, by a security agency in relation to the security of any property or person, by providing security personnel or otherwise and includes the provision of services of investigation, detection or verification of any fact or activity" 3. It is the case of the Revenue that the term "security agency service" covers any person engag....
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.... Union of India - [AIR 1963 SC 124]. Since State cannot be a person, it cannot be a "security agency". Therefore, no service tax under the head security agency service can be charged on the amounts collected by the Police or Home Guards or any officers of the Government for providing security. This issue was examined at length in the case of Deputy Commissioner of Police, Jodhpur (supra) whereas para 8 to 15 of which are reproduced below: "8. The question for decision is whether the State Police represented by the Superintendents of Police of various districts, would be covered within the definition of security agency services and service tax will be liable to be paid by them on the amounts recovered by them for providing security personnel to various organizations. Further, they were also sending police personnel for character verifications of candidates selected for various jobs and collecting charges but they neither got the registered with the Department nor did they pay service tax on such amounts recovered. As per Section 65(94) of the Finance Act, 1994, the definitions of "Security Agency" as well as "Security Agency Service" are given below for ready reference :- 'Sec....
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.... term "person". It is also noteworthy that in the year 2012 when the pattern of levy of service tax was changed and the concept of negative list was introduced with effect from 1-7-2012, a definition was introduced for the term "person" in Section 65B(37), of the Act, which includes the Govt., local authorities, etc. From this, it is evident that such a definition for the term "person" has become part of the statute only from this date. To decide the meaning of "person" up to this date, we will have to refer to the General Clauses Act, 1897 as well as relevant case laws. The Apex Court has clearly held that the definition of "person" cannot be extended to include State. Consequently, we are of the view that the Superintendent of Police will not be covered within the term "person". 11. The second leg of the argument advanced by the appellants is that they are not engaged in the business of rendering services relating to security. Their submission is that the occupation in business by a person is a condition precedent for a security agency. The lower authority has held that the term "business" does not signify any commercial activity for the purpose of gaining something out of the ....
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....peace and order. The appellant cannot carry out any activity beyond the legislative competence. The user charges are levied by the State Government for the deployment of Police Force for the maintenance of public peace, security and law and order as per Section 46 of the Police Act, Section 46 is reproduced below :- "46. Payment for police service. - The State Government may levy from any person, who carries on any such occupation, gathering, exhibition, sale, entertainment, etc., for monetary gain, as may, for the purpose of public security or for the maintenance of public peace or order, require deployment of additional police force, such user charges as may be prescribed." (ii) The fee collected should be levied as per the provision of relevant law. The State Government, in exercise of powers conferred under Section 46 of the Police Act issued two notifications wherein the charges to be recovered for providing additional police force for the purpose of maintaining public security and law and order have been notified. Notification number 27(2)Home/Gr.-6/84, dated 19-5-2008 which notifies the charges for police arrangement in Central Government offices/institutions/banks and....