2015 (12) TMI 487 - AT - Service Tax

Demand of service tax - Security service - Held that - Appellants have categorically stated that the amount received by them is deposited to the credit of the State Government. Thus, prima facie, the amount is deposited in the Consolidated Fund of the State and per Article 285 of the Constitution of India, the income of the state can not be taxed by the Central Government. - Stay granted.

Summary

The Appellate Tribunal CESTAT DELHI ruled that the amount received by the Superintendent of Police for providing Security Services is not liable to service tax as it is deposited to the credit of the State Government, which cannot be taxed by the Central Government as per Article 285 of the Constitution of India. The service tax demand of Rs. 1,10,96,007/- along with interest for the period May 2006 to March 2012 was stayed during the appeal.