TaxTMI 
TaxTMI 
2023 (12) TMI 183
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....pellant being a police department of Government providing the security service in the interest of public to maintain the law and order. The services to the public is the sovereign function of the Government which is not liable for the service tax as the police department is not covered within the definition of person as mentioned in Section 64(94) and is also not a commercial concern and not an undertaking in business activity. Therefore, the activity of the police department is not liable to service tax. He submits that this issue is no longer res- integra as the same has been decided in various following judgments:- Deputy Commissioner of Police Jodhpur Vs. CCE & ST, Jaipur-II 2017 (48) STR 275 (Tri.- Del.) Mumbai Police Vs. CST 2017 TIOL (1067) (CESTAT- Mimbai) Dy. Inspector General of Police Vs. CCE, Bhopal, vide final order No 52286-52287/2017 dated 10.03.2017 ( Tri.- Delhi) The Superintendent of Police Vs C.C.E.S.T.- Bhavnagar vide final order No. A/11428/2018 dated 13.07.2018 CESTAT-Ahmedabad 3. Shri Ajay Kumar Samota, Learned Superintendent (AR) appearing on behalf of the Respondent reiterates the finding of the impugned order. 4. W....
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....activity and the same is undertaken for consideration (not a statutory fee), then in such cases service tax would be leviable as long as the activity undertaken falls within the scope of a taxable service as defined." 10. The appellants have argued that the term "person" appearing in the definition must be construed to be a natural person as well as a juristic person and by no stretch of imagination, the same will include the State or its officers or the posts created under a statute. They cited the judgment of the Constitution Bench of the Hon'ble Supreme Court in the case of West Bengal v. Union of India [AIR 1963 SC 124] in which the Apex Court has held as under :- "the definition is an enlargement of the natural meaning of the expression 'person', even the extended meaning does not include the State." Their submission is that Superintendent of Police is an authority of the State Govt. to carry out statutory and constitutional duties. The definition of the term "person", (which does not cover the Govt.) in the General Clauses Act, 1897 is given as follows :- "42. "Person" shall include any company or association or body of individuals, whe....
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....vities undertaken by the police, for which charges have been recovered, cannot be held to be in the nature of business activity. 12. Now, we turn to the C.B.E. & C. Circular No. 89/7/2006-S.T., dated 18-12-2006. The circular has indicated under what conditions an activity performed by a sovereign/public authority should be categorized as one which is liable to payment of service tax. The circular clarifies that charges recovered by any sovereign/public authority for carrying out any statutory function will not be liable for levy of service tax if all the following conditions are satisfied :- (a) Sovereign/public authorities perform duties which are in the nature of statutory and 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. The satisfaction of each of the above three conditions is analysed below :- (i) A sovereign/public authority performs duties which are in the nature of statutory and mandatory obligation to be fulfilled in accordance with law. The Superi....
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....required to collect the usage charges and credit the same in the Rajasthan State Government treasury. The submission made by the police department in this regard is that the fees recovered by them is for provision of additional police force. They have referred to Section 46 of the Rajasthan Police Act, 2007 and submitted that the additional police officers are deployed at the request of any person only for the purpose of public security or for the maintenance of public peace or order. The fees levied and collected for this purpose is strictly as per the notification issued by the State Govt. under the above Section of the Act. The amounts so collected are mandatorily deposited into the Govt. treasury. Accordingly, they have submitted that all the conditions stipulated by the C.B.E. & C. circular are satisfied and consequently the activities are to be considered as statutory function and no service tax can be levied on such fees collected for discharging the sovereign function. The lower authorities have, however, taken the view that the activity undertaken is not in the nature of statutory duty, but an activity undertaken for a consideration which is not a statuto....
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....at the appellant was engaged in providing the Services to private persons or companies for activities, like Escort of Cash, etc to the public/Private Sector Banks, Security to individuals, Securities for Cricket Matches and other functions organized etc. On the said activities for providing these services certain amount were recovered by the appellant from the service receivers. The case of the department is that the appellant is providing 'Security Agency Services' as defined under Section 65(105) (w) of the Finance Act, 1994 and same is liable for Service Tax 2. Shri. N.V.Suchak, Ld. Charted Accountant appearing on behalf of the appellant submits that the appellant being a Police Department providing the Security in the interest of Public to maintain the Law and order. The services of the Public/sovereign functions not liable for Service Tax. He submits that the similar issue has been raised by the Department, against the Police Department at different part of the country. This Tribunal taking consistent view held that the Police Department is not liable for Service Tax for Security Services providing by them. In support, he placed reliance on the following judgments. ....