TMI Blog2007 (10) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... firming Service Tax for the period 1-7-2003 to 30-6-2005 to an extent of Rs.1,86,91,956/- towards Service Tax (inclusion of Education Cess) by invoking larger period on the allegation of suppression of value of taxable services. There is penalty of Rs.1.90crores and Rs.100 per day under Section 76 of the Finance Act, 1994 and Rs.1000/- under Section 77 of the Finance Act, for their failure to furnish the ST-3 returns. 2. The allegation of the Revenue is that the appellant being a Chief Electrical Inspector to Government of Karnataka who are engaged in the activity of providing taxable services under the category of Technical Inspection and Certification services, as defined under Section 65(108) of the Finance Act, 1994 and that they h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve effect and relied on Apex Court judgment rendered in the case of Suchitra Components Ltd. v. CCE, Guntur - 2007 (208) E.L.T. 321 (S.C.). He pointed out that the activity of issue of Electors Photo Identity Cards was also held to be a sovereign activity performed by State functionaries and demands were set aside by dismissing the Revenue's appeal in the case of CC CE v. CMC Ltd . - 2007 (7) S.T.R. 702 (Tri.-Bang.). The Bench relied on the Board's Circular No. 141 /52/95-CX dated 14-8-95 and No. 195/20-CX dated 3-4- 96. The Bench also relied on the ruling rendered in the case of CCE, Indore v. Ankit Consultancy Ltd. - 2007 (6) S.T.R. 101 (Tribunal-Delhi) which upheld the contention that when the Government is performin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the levy of Service Tax for larger period and penalties imposed. 6. On a careful consideration, we notice that the appellant is a State Government Department. It is carrying on sovereign activity of inspection and certification of electrical installations in terms of special legislations. Revenue has proceeded on the ground that these activities come under the heading of Technical Inspection and Certification Services . This is contested by the appellant on the ground that the activity has to be performed in terms of Electricity Act and the Government Department has to carry on this activity as a sovereign function and the activities of Government performed as a statutory sovereign function cannot be subject matter for levy of Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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