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2022 (3) TMI 328 - AT - Service TaxLevy of service tax - Security Agency Service or not - police personnel supplied to public departments, private companies and persons etc. - statutory fee or levy or otherwise? - HELD THAT:- In this case, the appellant is a Police Department governed by the State of Kerala. The appellant is discharging the function of security of property and person. Apart from that, appellant is providing certain security personnel to certain Government agencies, Central/State, public sector undertakings and other private persons and charging the amount as provided under Section 8 of the Kerala State Police Act. The amounts so recovered have been deposited into Government treasury under different heads. Whether providing armed security guards to public sector undertakings, State/Central Government Departments or other persons is covered under Security Agency Service or not? - HELD THAT:- The issue is decided in the case of THE SUPERINTENDENT OF POLICE VERSUS C.C.E,S.T. - BHAVNAGAR [2018 (8) TMI 1103 - CESTAT AHMEDABAD] where it was held that police department, which is an agency of the State Govt., cannot be considered to be a person engaged in the business of running security services. Thus, the appellants are not liable to pay service tax being appellants are discharging sovereign functions in terms of Kerala State Police Act. Therefore, demand of service tax is not sustainable against the appellant - appeal allowed - decided in favor of appellant.
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