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2011 (5) TMI 614 - CESTAT, NEW DELHIStay application - pre-deposit - Revenue imposed demand on appellant on ground that consideration received by the Appellant from the manufacturers and other operators for technical support for manufacture and certification of equipment to be used in Indian Railways is liable to service tax under entries Scientific and Technical Consultancy, Intellectual Property Rights, Technical Inspection and Certification Service - Held that:- Providing railway service cannot be considered as a "Sovereign Function". This is a case where a person wanting to undertake a commercial activity seeks help from an arm of the government. Just because the organization giving such service is constituted under a statute of the Parliament the activity does not become a statutory function. Further the consideration to be paid is not in the nature of fees to recover the cost for doing such service but in the nature of a commercial consideration. In the case of fees charged for testing the equipment to be used on Indian railways system, the matter is on a more disputable footing. Therefore, we are of the view that Appellant has made out a prima facie case in their favor in the matter of time bar. We order for deposit of Rs.50 lacs within three months from the date of this order, for admission of Appeal.
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