9911796707
TMI Blog2011 (11) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... , Central Board of Trustees Employees Provident Fund, India and also the Department of Company Affairs. As regards the Income Tax department, they are undertaking the services of issue of PAN Card (Permanent Account Number Card). For this purpose, they print, supply and distribute application forms to the applicants against payment of a fee of Rs.5 per application form, receive PAN applications in prescribed form on behalf of the Income Tax department, validate the applications with the checklist provided by the Income Tax department and carry out verification about the identity and address of the applicants. In case any discrepancies are noticed, applications are returned to the applicants pointing out the deficiency and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the services rendered to the Income Tax department cannot be classified as 'Business Auxiliary Service' inasmuch as the Income Tax department is involved in levy and collection of income tax. It is a sovereign and statutory function and issue of PAN card is in relation to such function. Therefore, it cannot be classified as 'Business Auxiliary Service'. Further, the amount is collected from the applicant who has applied for PAN card and not from the Income Tax department and therefore, the demand is not sustainable. 3.1 As regards the services rendered to the Employees Provident Fund Organisation and the Department of Company Affairs, both services relates to upgradation of information technology systems and operations of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indings of the lower adjudicating authority. 5. We have carefully considered the rival submissions. 6. As regards the demand in respect of services rendered for issue of PAN Cards on behalf of the Income Tax department, we find that the Income Tax department is engaged in the sovereign function of levy and collection of income tax. Issue of PAN Cards on behalf of the Income Tax department is in relation to such sovereign function. It is not in relation to any business. Therefore, issue of PAN Cards cannot come under the category of 'Business Auxiliary Service' as has been held in the impugned order. This Tribunal in the case of C.S. Software Enterprises Ltd. (cited supra) held that the activity of preparing elector photo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided by a sovereign/public authority required to be provided under a statute can be considered as 'provision of service' for the purpose of levy of service tax. 2. The issue has been examined. The Board is of the view that the activities performed by the sovereign/public authorities under the provision of law are in the nature of statutory obligations which are to be fulfilled in accordance with law. The fee collected by them for performing such activities is in the nature of compulsory levy as per the provisions of the relevant statute, and it is deposited into the Government Treasury. Such activity is purely in public interest and it is undertaken as mandatory and statutory function. These are not in the nature of service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the services rendered by the appellant was to manage and monitor the modernization and computerization of various operations conducted by the DCA so as to improve certainty and speed in delivery of services. In the case of EPFO, the services received relates to acquisition and installation, commissioning and system integration of the IT systems, hosting facilities for the central site, preparation and issue of NSSN cards to the members of EPFO. The taxable service covered under the category of 'Information Technology Software Service' includes - (i) development of IT software; (ii) study, analysis and design of IT software; (iii) adaptation, upgradation, enhancement, implementation and other similar services related to IT s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
