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2018 (9) TMI 2001 - PUNJAB & HARYANA HIGH COURTLiability of Service Tax - sum charged for providing security to various banks in the State of Punjab - Exemption of property and income of a State from Union taxation - HELD THAT:- A perusal of the Article 289 of the Constitution of India shows that the property and income of a State is exempted from Union taxation. However, the Union is not debarred from imposing or authorising or imposition of any tax by law to be framed by the Parliament in respect of a trade or business of any kind carried on by or on behalf of the State or any property used for the purpose - In the case in hand, providing security cannot be said to be a business carried on by the State, as it is otherwise the duty of the State. Security service has not been provided to any private individual. Apparently for the reason of requirement of security more than the normal being provided by the State, certain amounts have been recovered from the public sector banks and All India Radio, on which Service Tax is sought to be charged by the department, which cannot be permitted, because of constitutional bar. The impugned orders directing recovery of Service Tax from the amount received by the State on account of service provided to the banks, etc. are set aside - Petition allowed - decided in favor of petitioner.
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