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2018 (10) TMI 162 - AT - Service TaxSecurity Agency Service - guarding the suit properties - assessee appointed by the Court Receivers (CR) of Hon’ble High Court, Mumbai and / Debt Recovery Tribunal - whether the security services provided by the appellants can be termed as sovereign function of the state and there is any specific exemption provided in the service tax statute for not taxing the said service? - Held that:- The facts are not in dispute that the appellants were engaged by the CR for providing taxable services and in no way, they were connected with the banks / financial institution, who ultimately reimbursed the expenses to the CR as per the applicable rules and instructions of the Court. Thus, the CR appointed by the Court for guarding the suit records cannot be considered as “client” of the appellant, in order to fall under the category of Security Agency Service. In this case, the service receiver is the CR, who performs the judicial functions as per the Court. Hence the activity undertaken by the appellant can be considered as sovereign function of the States in as much the Hon’ble Court performs according to the mandates of the constitution of India. Appeal dismissed - decided against Revenue.
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