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2017 (11) TMI 346 - AT - Service TaxSecurity services - levy of tax - whether providing armed security guards to public sector banks/undertakings and Govt. departments is to be covered under the definition of ‘security services’ and collection of charges for the same will be liable to service tax under the Finance Act, 1994? Held that: - CBEC has issued a Circular No. 89/7/2006-S.T., dated 18-12-2006 clarifies that wherever the charges collected by any sovereign public authority for carrying out any statutory function, the same is not liable to levy of service tax subject to three conditions - CESTAT in the case of Dy. Commissioner of Police & Others v. CCE, Jaipur & Others, [2016 (12) TMI 289 - CESTAT NEW DELHI] concluded that the police department which is in the agency of State Government cannot be considered to be a person engaged in the business of running security services. It is on record that the appellant is depositing the money collected on account of the subject services in the Govt. treasury. It is also on record that the appellant is performing statutory function which is one of the three conditions of the CBEC Circular dated 18-12-2006 and it has also been claimed that the collection of the fee levied by the appellant is as per the provisions of relevant law. Appeal allowed - decided in favor of appellant
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