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2017 (9) TMI 361 - AT - Service TaxGTA services - failure to take registration and pay Service Tax - The department entertained the view that the appellant was liable to pay Service Tax on the amounts received by them from Army/GREF for use of the vehicles under the category of Goods Transport Agency - penalty - Circular No.89/7/2006-ST dated 18.12.06 - Held that: - The CBEC has clarified vide above Circular that activities performed by Government and its wings which are in public interest and is undertaken as mandatory and statutory function are not to be charged to Service Tax even if some amount is charged by way of for the provision of such activity. The appellant has made available vehicles for army and GREF in the state, such activity was in pursuance of public interest. Keeping in view the fact that Sikkim is a state bordering China we appreciate that the Government was bound to reach the necessities including food to people of Sikkim at the time of dislocation of traffic and when private crushers and trucks are taken away from the road - the activity performed is part of the statutory function of the State and hence in the light of the CBEC's Circular, cannot be considered as provision of taxable service. Appeal allowed - decided in favor of appellant.
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