TMI Blog2022 (5) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... R. S.K. MOHANTY, MEMBER (JUDICIAL) AND MR. SANJIV SRIVASTAVA, MEMBER (TECHNICAL) Shri A.R. Krishnan, Advocate, for the Appellant Shri Dilip Shinde, Assistant Commissioner, Authorised Representative for the Respondent ORDER These three appeals are directed against the orders of the Commissioner of Central Excise and Customs, Aurangabad, as detailed in table below:- Sl. No . Appeal No. Order-in- original No. Service Tax demand 1. ST/89884/2014 53/ST/COMMR/2014 dated 12.08.2014 Period (Rs.) 01.04.08 30.06.12 45,71,766/- 01.07.12 31.12.12 6,52,431/- Total 52,24,197/- 2. ST/90066/2014 54/ST/COMMR/2014 dated 12.08.2014 01.04.08 30.06.12 61,94,713 01.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 18th December, 2006 bearing No. 89/7/2006. Clauses 2 and 3 of the said circular read thus : 2. The issue has been examined. The Board is of the view that the activities performed by the sovereign/public authorities under the provision of law are in the nature of statutory obligations which are to be fulfilled in accordance with law. The fee collected by them for performing 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 is undertaken for a consideration not in the nature of statutory fee/levy then in such cases, Service Tax would be leviable. if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks, either jointly with other corporate bodies or institutions, or with Government or local authorities, or on an agency basis, in furtherance of the purposes for which the Corporation is established and all matters connected therewith. (Emphasis added) 9 . Hence, one of the statutory functions of MIDC is to establish and manage the industrial estates at places selected by the State Government. Clause (a) of Section 2 of MID Act defines amenity which reads thus : amenity includes road, supply of water or electricity, street 2(a) lighting, drainage, sewerage, conservancy and such other convenience as the State Government may, by notification in the Official Gazette specify to be an amenity for the purpose of this Act. 10 . In the case of Ramtanu Co-operative Housing Limited and Another, the Apex Court was dealing with the issue of constitutional validity of MID Act. In paragraphs 15 and 16, the Apex Court held thus : 15. The pith and substance of the Act is establishment, growth and Organisation of Industries, acquisition of land in that behalf and carrying out the purposes of the Act by setting up the Corporation as one of the limbs or agencie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts and profits in appropriate cases. Receipts of these moneys arise not out of any business or trade but out of sole purpose of establishment, growth and development of industries. (Emphasis added) 11 . The Apex Court categorically held that functions and powers of MIDC indicate that the said Corporation is acting as a wing of the Government. In the case of Managing Director, Haryana State Industrial Development Corporation, the Apex Court was considering the role played by Haryana State Industrial Development Corporation. The Apex Court held that the said Corporation discharges sovereign functions. The Apex Court also held that considering the objects and purport for which the said Corporation of Haryana has been constituted, the function discharged by the Corporation must be held as Governmental function. 12 . We have already referred to Section 14 of the MID Act which provides that the function of the MIDC is not only to develop industrial areas but to establish and manage industrial estates. The role of MIDC is not limited only to establishing industrial estates and allotting the plots or buildings or factory sheds to industrial undertakings. The functi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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