Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2015 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 1057 - HC - Service TaxLevy of service tax on life insurance coverage to the employees of the State Government - By the judgment under appeal, learned single Judge held that the life insurance provided pursuant to Rules 22A and 22B of Part I KSR is not exigible for service tax. It is this judgment which is under challenge before us. - Held that:- Reading of the CBEC circular shows that it has been clarified by the CBDT that activities performed by sovereign/ public authorities under the provisions of law are in the nature of statutory obligations which are fulfilled in accordance with law, as the functions, according to the Board, are mandatory and statutory functions and are not in the nature of service to any particular individual for any consideration. On this basis, it is clarified that such activities performed under the provisions of law do not constitute taxable service and that no service tax is leviable on such activities. As we have already seen, the respondent department is providing personal insurance and group insurance in pursuance of the statutory mandate as contained in Rules 22A and 22B of Part I KSR. In other words, the insurance provided is a mandatory statutory function discharged by a State Government Department. Such an activity is not a taxable service for the purpose of service tax in the light of the circular issued by the Central Board of Customs and Excise referred to above. This, therefore, means that the view taken by the learned single Judge does not merit interference.
|