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TMI Blog2024 (2) TMI 1082X X X X Extracts X X X X X X X X Extracts X X X X ..... same. 2.2 The Revenue is of the view that the activity undertaken by the appellant, falls under the category of "Security Services". Therefore, the proceedings were initiated against the appellant to demand service tax under the category of "Security Services" from the appellants. 2.3 The matter was contested by the appellant stating that the appellant being a Government of India Undertaking and whatever amount have been received, has gone to the Government Treasury and the appellant is not engaged in any business of providing security services. Therefore, they did not fall under the category of "Security Services". Accordingly, they are not liable to pay service tax under Section 65 (94) of the Finance Act, 1994. 2.4 The matter was adjudicated. The demand of service tax were confirmed against the appellant. 2.5 Aggrieved from the said orders, the appellant is before us. 3. None appeared on behalf of the appellant nor any request for adjournment has been received, but considering the facts that the appeals pertain to the year 2010-2012, hence, the same are taken up for disposal. 4. Heard the ld. A.R. for the Revenue. 5. We find that the issue involved in these cases is squar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the activity undertaken falls within the scope of a taxable service as defined." 10. The appellants have argued that the term "person" appearing in the definition must be construed to be a natural person as well as a juristic person and by no stretch of imagination, the same will include the State or its officers or the posts created under a statute. They cited the judgment of the Constitution Bench of the Hon'ble Supreme Court in the case of West Bengal v. Union of India [AIR 1963 SC 124] in which the Apex Court has held as under :- "the definition is an enlargement of the natural meaning of the expression 'person', even the extended meaning does not include the State." Their submission is that Superintendent of Police is an authority of the State Govt. to carry out statutory and constitutional duties. The definition of the term "person", (which does not cover the Govt.) in the General Clauses Act, 1897 is given as follows :- "42. "Person" shall include any company or association or body of individuals, whether incorporated or not,". In the light of the definition of the term "person" in the General Clauses Act, 1897, which has also been examined and clarified by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 89/7/2006- S.T., dated 18-12-2006. The circular has indicated under what conditions an activity performed by a sovereign/public authority should be categorized as one which is liable to payment of service tax. The circular clarifies that charges recovered by any sovereign/public authority for carrying out any statutory function will not be liable for levy of service tax if all the following conditions are satisfied :- (a) Sovereign/public authorities perform duties which are in the nature of statutory and 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. The satisfaction of each of the above three conditions is analysed below :- (i) A sovereign/public authority performs duties which are in the nature of statutory and mandatory obligation to be fulfilled in accordance with law. The Superintendent of Police is an extended arm/instrumentality/ agency of the State Government and is controlled and managed by the State Government. It is carrying out the activities as entrusted to it vide the Police Act which are s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Rajasthan Police Act, 2007 and submitted that the additional police officers are deployed at the request of any person only for the purpose of public security or for the maintenance of public peace or order. The fees levied and collected for this purpose is strictly as per the notification issued by the State Govt. under the above Section of the Act. The amounts so collected are mandatorily deposited into the Govt. treasury. Accordingly, they have submitted that all the conditions stipulated by the C.B.E. & C. circular are satisfied and consequently the activities are to be considered as statutory function and no service tax can be levied on such fees collected for discharging the sovereign function. The lower authorities have, however, taken the view that the activity undertaken is not in the nature of statutory duty, but an activity undertaken for a consideration which is not a statutory fee. We find ourselves unable to agree to this stand taken by the lower authorities. The police department has the mandatory duty to maintain public peace and order. For such duty, which is in the nature of sovereign function, no charges are recoverable from the citizens. In the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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