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2017 (9) TMI 1068 - AT - Service TaxBusiness Auxiliary services - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - contention by the Revenue in their appeals is that the Original Authority erred in holding that the respondent were not liable to service tax under BAS finding the nature of service as statutory and sovereign, as provided by the Governments - Held that: - Admittedly, the smart card for vehicle registration is issued by Government of Maharashtra. The applicant for such smart card cannot be considered as a client to be covered under BAS tax entry. The registration of vehicle is a statutory obligation and non-compliance will attract penal consequences. GOM is implementing such statutory provision. The fee for issuing such card is fixed in terms of motor vehicle regulations and as noted by the Original Authority on payment of such fee only the process of preparation of smart card can be initiated. The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work does not take away the merit that the whole process of issue of smart card for applicant is statutory function which only the Government Road Transport Authority can do - there is no scope for application of clause (vi) of Section 65 (19) in the scheme of things, as discussed above, there is no provision of service on behalf of the client in the present case. The Hon’ble Madhya Pradesh High Court in the case of CCE, Bhopal Vs. Smart Chip Limited [2015 (7) TMI 886 - MADHYA PRADESH HIGH COURT] relying on the decision of the Tribunal in CCE, Indore Vs. Ankit Consultancy Limited [2006 (10) TMI 61 - CESTAT, NEW DELHI] held that the activities of the appellant with reference to service centres in different offices of the transport department cannot be taxed under Business Auxiliary Service. Appeal dismissed - decided against Revenue.
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