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TMI Blog2016 (8) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... xtended period of limitation is not sustainable as there was no mala-fide intention of the respondents not to pay service tax in the light of the clarification issue by the Commissioner of Servicer Tax Ahmadabad on 27-09-2006 - demand of extended period of limitation is not sustainable. Demand confirmed for the normal period only. - assessee is entitle for cum tax benefit - Decided partly in favor of Revenue. - ST/200-201/2011 - Final Order No. 60343-60344/2016 - Dated:- 6-6-2016 - Mr. Ashok Jindal, Member (Judicial) Shri. G.M.Sharma, A.R for the appellant Mr. Rajeev Kumar, Advocate for the respondent ORDER The revenue is in appeal against the impugned orders wherein the demand of service tax has been dropped by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue is before us in appeal, 3. Ld. AR submits that the activity undertaken by the respondents is not a sovereign function as per the section 9 of the seeds act, 1966. In facts, services of the respondent can be obtained by any person which is optional, therefore, the activity undertaken by the respondents does not qualify as sovereign function. The Ld. AR also relied on the CBEC circular no. 89/7/2006-S.T dated 18.12.2006. He further submits that the identical issue came up before this tribunal in the case Maharashtra State Seeds Certification Agency 2015 (37) STR 655 (Tri. Mum), wherein it has been held that the activity on Technical Inspections and Certification of seeds under Seeds Act, 1966 as a taxable service. Therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and shall be accompanied by such fees as may be prescribed. (3) On receipt of any such application for the grant of a certificate, the certification agency may, after such enquiry as it thinks fit and after satisfying itself that the seed , to which the application relates conforms to the 8 [prescribed standards], grant a certificate in such form and on such conditions as may be prescribed: 9 [Provided that such standards shall not be lower that the minimum limits of germination and purity specified for that seed under clause (a) of section 6.]3[Provided that such standards shall not be lower that the minimum limits of germination and purity specified for that seed under clause (a) of section 6.] The persons who desire their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties, 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 charged and the same is ultimately deposited into the Government Treasury. A doubt has arisen whether such activities provided by a sov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at activities of the appellant can be considered as mandatory and statutory functions provided by a sovereign/public authority. 10. We also see the clarification provided by para 2.5 in Circular No. 59/8/2003-S.T., dated 20-6-2003, which reads as under : 2.5 Technical Inspection and Certification Services : A doubt has been raised whether certification given in respect of immovable property should fall under the purview of technical inspection and certification services . In this regard it may be recalled that earlier, CBEC vide its order No. 1/1/2002, dated 26-2-2003, issued under Section 37B (of the Central Excise Act as made applicable to service tax) had clarified that certification given under authority of any code or statute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Seeds Act, 1966 read with Seeds Rules, 1968, the said Act provides for regulating the quality of certain seeds for sale, we do not find that ingredients of proviso to Section 73 of the Finance Act, 1994 are present in the facts and circumstances of the case. Therefore, the demand within the normal period of limitation is only upheld and that beyond the same is set aside. 14. Keeping in view the facts and circumstances of the case, as enumerated in earlier para, we set aside the penalty under Sections 76, 77 and 78 under Section 80 of the Finance Act, 1994. We also observe that part of the demand of tax under Section 11D(3) would be overlapping with the demand under Section 73. We therefore confirm the demand which is within the normal p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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