TMI Blog2013 (9) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... 5) TMI 57 - SUPREME COURT). Pre – deposit of duty – One – fifth of the duty was ordered to be submitted – remaining amount was allowed to be stayed – stay granted partly. - ST/219/11 - S/274/13/CSTB/C-I - Dated:- 27-2-2013 - P R Chandrasekharan And Anil Choudhary, JJ. For the Appellant : Shri R.V.Desai, Sr. Counsel For the Respondent : Shri Rakesh Goyal, Addl. Commissioner (AR) Per : Shri P R Chandrasekharan : The appeal and stay application are directed against the Order-in-Original No.16-17 / ST/2010/C dated 13.12.2010 passed by the Commissioner of Central Excise Customs, Nagpur. 2. The appellant M/s Central Railway, Kingsway, Nagpur, which is a division of the Indian Railways under the Ministry of Railways, ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsolidated fund. The show-cause notice has invoked extended period of time for confirmation of demand and the Railway being part of the Government, intention to evade tax cannot be alleged against the Government and, therefore, bulk of demand is barred by limitation of time. The learned Counsel also submits that Railway being a government department, the question of providing any security for the revenue would not arise. It is also submitted that the word person has been defined under Section 65B (37) of Chapter V to the Finance Act, 2012 so as to include government and prior to this amendment, there was o definition of a person and, therefore, Railways are not liable to pay Service Tax. On these grounds, he prays for grant of stay agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in clause (2) of that article? (2) Do the provisions of article 289 of the Constitution of India preclude the Union from imposing, or authorizing the imposition of, excise duties on the production or manufacture in India of the property of a State used for purposes other than those specified in clause (2) of that article? (3) Will sub-section (2) of Section 20 of the sea Customs Act, 2878, (Act 8 of 1878) and sub-section (1A) of section 3 of the Central Excises and Salt Act, 1944 (Act 1 0f 1944) as amended by the Bill set out in the Annexure to inconsistent with the provisions of articles 289 of the Constitution of India? By the majority decision, it was held as follows:- 35. But it is contended on behalf of the States t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to pay indirect taxes for the activities undertaken by it if the activity undertaken comes within the scope of taxable event as defined in the law. Even though the above judgment was delivered in the context of union excise duty and customs duty, the ratio of the decision would apply with equal force in respect of service Tax also, which is also an indirect tax. Accordingly, it has to be held that the Indian Railways though part of the Union Government is liable to pay Service Tax in case the activities undertaken by them fall within the definition of taxable services and we hold accordingly. 5.3 As regards the second contention of the appellant that Chapter V of the Finance Act, 1994 does not define the person' liable to pay Service T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the same has been made under the provisions of Section 94 of the Finance Act, 1994 for the purpose of carrying out the provisions of the Chapter V of Finance Act, 1994 and has been notified by the Central Government in the Official Gazette. This rule has also been placed before the Parliament and has been approved by the Parliament. Therefore, it has the same force as law. Therefore, the contention in this regard made by the appellant is not sustainable. 5.4 As regards the point raised with regard to invoking the extended period of time for confirmation of demand, there is some merit in this argument. Normally, it cannot be presumed that the government or government departments indulge in evasion of taxes either by suppression or by wil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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