Forgot password
New User/ Regiser
⇒ Register to get Live Demo
2016 (12) TMI 289 - CESTAT NEW DELHI
Levy of tax on state police - Security Agency Service - Section 65(105)(w) read with Section 65(94) of the Finance Act, 1994 - agency of state government - whether the state police represented by the Superintendents of Police of various districts, would be covered within the definition of security agency services and service tax will be liable to be paid by them on the amounts recovered by them for providing security personnel to various organizations? - 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. Consequently, the activity undertaken by the police is not covered by the definition of Security Agency under Section 64(94) of the Act. We also find that in terms of CBEC circular on this subject, the fees collected by the police department is in the nature of fee prescribed for performing statutory function, which has been deposited into the Govt. treasury. In the light of the CBEC circular also, there can be no levy of service tax on such activities carried out by the police department.
In line with the above discussions, the appeals filed by the police department succeed - appeal allowed - decided in favor of Department.