TMI Blog2017 (12) TMI 1309X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER Per: Anil Choudhary The present appeal have been filed by the appellant (U.P. Police) against Order-in-Original No. 13/COMMR./ST/GZB/2013-14 dated 30/10/2013 passed by Commissioner of Central Excise Customs, Ghaziabad. In the present case service tax demands have been made against the Police Department on the basis of the view entertained by revenue that the police department has provided Security Agency Service Covered under Section 65 (105) (w) read with Section 65 (94) of the Finance Act, 1994. 2. The brief facts of the case are summarized below:- (i) Superintendents of Police of Ghaziabad in the State of Uttar Pradesh is alleged to have been engaged in providing Security Agency Services covered under Section 65 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failed to take registration with the department nor did they deposit the service tax for the charges recovered for providing these services. (iii) Revenue took the view that the appellants, though an agency/department of State Government and responsible for maintenance of law and order and security to public at large, was providing Security Agency Services in relation to property as well as personal security for a consideration. The Central Board of Excise and Customs, New Delhi has also clarified the issue of taxability in respect of services provided by public authorities vide Circular No.89/7/2006-ST dated 18.12.2006 that: activities assigned to and performed by the sovereign / public authorities under the provisions of any la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in the business of rendering services relating to security. (iv) The Central Board of Excise and Customs has dealt with the issue of levy of service tax on the charges recovered by any sovereign/public authority carrying out any statutory function in their Circular no. 96/7/2007-ST dated 23.8.2007, wherein it has been clarified that no service tax would be payable if all the following conditions are satisfied:- (a) Sovereign / public authorities perform duties which are in the nature of statutory mandatory obligation to be fulfilled in accordance with the law. (b) The fee collected should be levied as per the provision of relevant law. (c) The amount collected is to be deposited into government treasury. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ors [AIR 1980 SC 326] (h) Punjab Ex-servicemen Corporation Vs. CCE, Chandigarh [2009 (13) STR 529 (Tri.-Del.)] (i) Surat Municipal Corporation Vs. CCE, Surat [2006 (4) STR 44 (Tri.-Del.)]. 6. The learned A.R. for revenue has relied on the impugned Order-in-Original. 7. Having considered the rival contention and on perusal of records, we find that the appellant have rendered statutory function, as providing security is a sovereign function. We also find that the service provided by appellant, are not taxable, as clarified by Circular No.96/7/2007-ST. Accordingly, the appeal is allowed and the impugned order is set aside. Appellant will be entitled to consequential benefits, in accordance with law. ( Dictated in Court ) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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