TMI Blog2023 (12) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... guards to various banks for their security - HELD THAT:- It has been held in the case of SUPERINTENDENT OF POLICE VERSUS COMMISSIONER OF CENTRAL EXCISE, JAIPUR [ 2019 (11) TMI 250 - CESTAT NEW DELHI] that merely because the Police may charge a fee it would not become a person engaged in the business of providing security and, therefore, no service tax can be levied. The impugned order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State of Madhya Pradesh. 2. The issue that arises for consideration in this appeal is as to whether collection of security charges for providing police guards to various banks for their security would entail levy of service tax under the category of security agency services defined under section 65 (94) of the Finance Act and made taxable under section 65 (105)w of the Finance Act. 3. The cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2019 and the relevant portion of the decision is reproduced below: 15. The short point to be decided by us is if the Police provides guards to banks or other commercial concerns and charges a fee as per the rates determined by the Government whether service tax can be charged under Security Agency Services on such fee or otherwise. The lower authorities have held since the term business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able for service tax fees if three conditions are fulfilled. 16. The first condition is that the statutory authority must perform a duty which is in the nature of statutory or mandatory obligations to be fulfilled in accordance with law. We have no doubt that the police has a statutory duty to provide security. The Second condition is that the fee should be collected as per law. Section 46 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aside. 17. We also find that similar decisions is taken in case of Superintendent of Police, Udaipur vs. CCE (Supra), Deputy Commissioner of Police, Jodhpur (supra) and DIG of Police (supra). We concur with the aforesaid decisions and set aside the impugned order. (emphasis supplied) 4. It has been held in the aforesaid decision that merely because the Police may charge a fee it wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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