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TMI Blog2014 (9) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... ited to the fund. From these provisions of the MIDC Act, it is clear that the Corporation has its own identity apart from that of Maharashtra Government and operates independently of the Government. The receipts of the corporation are credited to its own fund and do not go the consolidated fund of the State. If that be so, the activities undertaken by it can not be construed as functions of the State. In the present case we have noticed that the appellant is undertaking lease of land in two stages. In the first stage an agreement to lease the land to eligible applicants on payment of premium is entered into subject to construction of commercial buildings on the land and once the construction is completed, a lease agreement is entered in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant submits that M/s MIDC has been created under the Maharashtra Industrial Development Act, 1961 and from the preamble of the Act it may be seen that the Corporation has been set up to make a special provision for securing the orderly establishment in industrial areas and industrial estates of industries in the State of Maharashtra and to assist generally in the organization thereof and for purposes connected in the matters aforesaid. Thus the object and purpose of the Corporation is for securing orderly establishment of industrial areas and industrial estates in the State of Maharashtra and thus the activities undertaken by the appellant is a sovereign function undertaken on behalf of the Government of Maharashtra. The learned consul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal Inspectorate of the Government of Karnataka would be amenable to service tax under the category of technical testing and certification and analysis service and this Tribunal held that since it is a statutory function, the said activity cannot be held to be liable to service tax. 4. The learned consultant also submits that in appellant's own case, this Tribunal vide a series of orders dated 12.7.2012, 2.9.2013 and 26.5.2013 had granted stay in respect of certain activities undertaken by the appellant such as maintenance of public utility services including roads, supply of water, street light, drainage etc and held that since the appellant is a public authority, they are not liable to service tax. 5. In the light of the above s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate with perpetual succession and a common seal, and may sue and be sued in its corporate name and shall be competent to acquire, hold and dispose of property, both movable and immovable, and to contract and do all things necessary for the purposes of the Act. Further, from Section 19 of the said Act, it is seen that all property, fund and other assets vesting in the Corporation shall be held and applied by it, subject to the provisions and for the purpose of the Act. Section 20 of the Act inter alia provides for maintenance fund for the Corporation and all monies received by the corporation from the Government, all fees, costs and charges received, all monies received by way of disposal of land, buildings and other properties, movable or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is nowhere related/connected to leasing of land and it was in that context, it was held that the acquisition of land for the purpose of the industrial development of the State can be considered as a sovereign function. Those are not the facts obtaining in the present appeal before us. As the facts involved are different and distinguishable, the ratio of the said decision would not apply. As held by the hon'ble Apex Court in the case of COLLECTOR OF C. EX., CALCUTTA Versus ALNOORI TOBACCO PRODUCTS 2004 (170) E.L.T. 135 (S.C.) Courts should not place reliance on decisions without discussing as to how the factual situation fits in with the fact situation of the decision on which reliance is placed. Observations of Courts are neither ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of the Apex Court in the Presidential reference in the context of section 20 of the Sea Customs Act [1964 (3) SCR 787] and A.P. Transport Corporation [1964 (52) ITR 524]. In the said decision, the Tribunal further noted that as per the definition of taxable service in Section 65 (105)(zzzz) of the Finance Act, 1994, if vacant land is given on lease or licence for construction of building or temporary structure at a later stage to be used for furtherance of business or commerce, the said activity would be leviable to service tax under renting of immovable property with effect from 1.7.2010. Therefore, in the present case also, the activity undertaken by the appellant would be amenable to service tax with effect from 1.7.2010, if not e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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