Applicability of service tax on fee collected by Public Authorities while performing statutory functions /duties under the provisions of a law – regarding

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..... vice Tax New Delhi, the 18th December, 2006 F.No. 255/1/2006-CX.4 Government of India Ministry of Finance Department of Revenue (Central Board of Excise and Customs) To Chief Commissioners of Central Excise (All) Chief Commissioners of Customs & Central Excise (All) Commissioners of Service Tax (All) Director General of Service Tax, Mumbai Director General, Central Excise Intelligenc .....

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..... issues certificate for petroleum storage tank, LPG/CNG tank in terms of provisions of the relevant laws. Fee as prescribed is charged and the same is ultimately deposited into the Government Treasury. A doubt has arisen whether such activities provided 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 ser .....

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..... therefore, no service tax is leviable on such activities. 3. However, if such authority performs a service, which is not in the nature of statutory activity and the same is undertaken for a consideration not in the nature of statutory fee/levy, then in such cases, service tax would be leviable, if the activity undertaken falls within the ambit of a taxable service. 4. Trade and field formations .....

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