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TMI Blog2011 (11) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to such function and, therefore, the said activity cannot be brought under the category of a taxable service and no service tax is leviable on such activities. Similarly, services rendered in respect of modernization and upgrading the Information Technology Systems of EPFO & DCA falls in category of 'Information Technology Software Service' which has been brought under the tax net with effect from 16.05.2008 and not under the category of 'Management Consultancy Service'. - Decided in favor of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... y is sought to be classified under the category of 'Business Auxiliary Service'. A service tax demand for the period July, 2003 to September, 2004 has been demanded on a sum of Rs.45,48,60,957/- received as service charges from various clients and the service tax amount demanded is Rs.3,67,80,546/-. As regards services rendered to Employees Provident Fund Organisation (EPFO), the demand has been made under the category of 'Management Consultant Services' on a sum of Rs.13,92,836/- involving a service tax demand of Rs.1,11,427/-. The 3rd demand is in respect of services rendered to the Department of Company Affairs (DCA) towards E-Governance project relating to modernization and computerization of various operations conducted by the said dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of C.C., C.E. & S.T., Hyderabad II vs. C.S. Software Enterprises Ltd. -2008 (10) S.T.R. 367 (Tri. - Bang.). He further relies on the judgement of this Tribunal in the case of Gandhi & Gandhi, Chartered Accountants vs. C.C.E. Hyderabad - 2010 (17) S.T.R. 25 (Tri. ' Bang.) wherein it was held that Computerized data processing for billing and accounts management service will not come under the category of 'Business Auxiliary Service' for the period prior to 01.05.2006. He further relies on the judgement of this Tribunal in the case of Dataware Computers vs. Commr. of C.EX., CUS. & S.Tax (A) Guntur - 2008 (12) S.T.R. 121 (Tri. - Bang.) wherein it was held that Generation of MIS reports and development of software for such purpose would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lows:- 'A number of sovereign public authorities (i.e. and agency constituted/set up by government) perform certain functions/duties, which are statutory in nature. These functions are performed in terms of specific responsibility assigned to them under the law in force. For examples, the Regional Reference Standards Laboratories (RRSL) undertake verification, approval and calibration of weighing and measuring instruments; the Regional Transport Officer (RTO) issues fitness certificate to the vehicles; the Directorate of Boilers inspects and issues certificate for boilers; or Explosive Department inspects and issues certificate for petroleum storage tank, LPG/CNG tank in terms of provisions of the relevant laws. Fee as prescribed is charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that if a service is rendered in relation to a sovereign function, such activity cannot be brought under the category of a taxable service and no service tax is leviable on such activities. Accordingly, we hold that issue of PAN Cards on behalf of the Income Tax department to income tax assessees is not a taxable service falling within the category of 'Business Auxiliary Service' and, accordingly, the demand of service tax on such activity under 'Business Auxiliary Service' is clearly unsustainable in law. 6.3 Similarly, in the case of services rendered to Employees Provident Fund Organisation (EPFO) and the Department of Company Affairs (DCA), it is noticed that the services rendered by the appellant is in respect of modernization and up ..... X X X X Extracts X X X X X X X X Extracts X X X X
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