TMI Blog2015 (6) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... andatory and statutory functions and are not in the nature of service to any particular individual for any consideration. On this basis, it is clarified that such activities performed under the provisions of law do not constitute taxable service and that no service tax is leviable on such activities. As we have already seen, the respondent department is providing personal insurance and group insurance in pursuance of the statutory mandate as contained in Rules 22A and 22B of Part I KSR. In other words, the insurance provided is a mandatory statutory function discharged by a State Government Department. Such an activity is not a taxable service for the purpose of service tax in the light of the circular issued by the Central Board of Cust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 22A and 22B of Part I KSR is outside the purview of service tax under the Finance Act, 1994 is legally tenable or not. 4.Rule 22A of Part I KSR provides that any person who enters Government service on or after 19th August, 1976 and has not crossed the age of 50 years shall, within a period of one year from the date of such entry in service, subscribe to a policy in the official branch of the State Life Insurance at such rate as may be determined by the Government from time to time and shall continue to subscribe till he ceases to be in Government service. The period of one year has not been reduced to one month by G.O(P). 229/12/Fin dated 19.4.2012. Rule 22B also provides that such employee shall enrol as a member of General Insurance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lled in accordance with law. The fee collected by them for preforming such activities is in the nature of compulsory levy as per the provisions of the relevant statute, and it is deposited into the Government treasury. Such activity is purely in public interest and it is undertaken as mandatory and statutory function. These are not in the nature of service to any particular individual for any consideration. Therefore, such an activity performed by a sovereign/public authority under the provisions of law does not constitute provision of taxable service to a person and, therefore, no service tax is leviable on such activities. 3. However, if such authority performs a service, which is not in the nature of statutory activity and the same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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