TMI Blog2024 (3) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... FUND ORGANIZATION VERSUS CST, DELHI [ 2017 (4) TMI 902 - CESTAT NEW DELHI] where it was held that the appellants are not liable to pay service tax on their statutory activities performed in terms of EPM MP Act, 1952. The appellants are not providing any taxable service to the employers covered by the said Act. The relationship and transaction between the employers and the appellant is in discharge of statutory and compulsory obligations, coercively enforceable by the law. The impugned order set aside - appeal allowed. - HON'BLE Ms. BINU TAMTA , MEMBER ( JUDICIAL ) And HON'BLE Ms. HEMAMBIKA R. PRIYA , MEMBER ( TECHNICAL ) For the Appellant : Ms Rashmi Malhotra , Advocate For the Respondent : Shri Rajeev Kapoor , Authorised Represe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he request by the appellant to stay the proceedings against the instant notice as identical matters were pending before the Tribunal for decision, the Order-in-Original was passed. Hence, the same was bad in law. She further contended that the appellant was performing statutory functions as mandated by the EPF MP Act, and the Constitution of India. The Learned Counsel also submitted that as per Board s Circular No. 96/7/2007-ST dated 23.08.2007, services provided under Statutory obligations are not taxable. She also submitted that the issue was no longer res-integra as the Tribunal had decided this issue in respect of the appellant in their favour, which was upheld by the Supreme Court. She prayed that the appeal may be allowed. 4. The Lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory functions. These are not to be treated as services provided for a consideration. Therefore, such activities assigned to and performed by a sovereign/public authority under the provisions of any law, do not constitute taxable service. Any amount/fee collected in such cases are not to be treated as consideration for the purpose of levy of service tax. 13. Having examined the scope of public authority‟ and applying the general principles to the functions and responsibilities of the appellant we have no hesitation to hold that the appellant is a public authority performing statutory functions as mandated by an Act of Parliament. 16. xxxxxxxxx The fee and other charges collected by the appellant from the employers in the present dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d payments, interest on investment, receipts from pension fund and other miscellaneous receipts. it is clear that penal damages received in terms of Section 14 of EPMF MP Act, 1952 cannot be considered as a consideration for a taxable service. Similarly, interest on delayed payment, interest received on investment, from pension funds cannot be subjected to service tax as there is no service related activity at all in such income. We are in agreement with the appellant on these issues. 20. Having examined the impugned orders, the submissions made by both the parties before us, closely, we find that the appellants are not liable to pay service tax on their statutory activities performed in terms of EPM MP Act, 1952. The appellants are not pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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