TMI Blog2019 (1) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 89/7/2006-ST dated 18.12.2006 - Held that:- The activity undertaken by the appellants is mandatory and in discharge of statutory obligation in the performance of sovereign functions of the State Govt. Therefore, the appellant’s case is squarely covered by the Circular as “Life Insurance”. Though, it was mentioned in the SCN that the appellants are providing “General Insurance Service” no ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he demand of ₹ 3,47,68,717/- and imposed penalty under Section 76 and a penalty of ₹ 5000/- under Section 77 of the Finance Act, 1994. 2. The Advocate for the appellants has submitted that KGID was started in the year 1981. The scheme of Life Insurance for the employees was started with a view to render financial assistance to the family members of the employee in case of death of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hand, the Ld. AR has reiterated the findings of OIO. 4. Heard both sides and perused the records of the case. We find that the appellants are undertaking the activity which is a mandatory and statutory function. We find that Hon ble High Court of Kerala while disposing the Writ Petition No. 15892/2008 observed, in respect of Kerala Govt. activity in similar manner, that the activity being peru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 . In view of the above, we find that the activity undertaken by the appellants is mandatory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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