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TMI Blog2016 (9) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... 05 to 31-03-2010 under the taxable clause of Section 65(105)(zzb) of the Finance Act, 1994. 2. The facts of the case are that the appellant, M/s Sukhmani Society for Citizen Services, is a society registered under Society Registration Act XXI of 1860 having district level senior functionaries of the administration and eminent personalities on its Board of Governors as ex-officio members. The appellant is running SUWIDHA (Single User-friendly Window Disposal and Help-line for Applicants) Centers at various towns of the district. The appellant through these SUWIDHA Centers, is engaged in facilitation of issue of different kinds of licenses, permissions and registrations by the Govt. of Punjab such as registration of B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following points: (i) The Primary objective of the appellant is to provide integrated citizen services pertaining to all departments to the public. These are in the nature of facilitization services to the general public and does not fall within any category of taxable service. (ii) The services rendered by them cannot be charge to services tax under Business Auxiliary Service, since the service recipient is the Government. Unless the services are in relation to business, no service tax is chargeable. (iii) The services which are facilitated by the appellant are falling in the category of sovereign functions of the Government and hence, no service tax is chargeable. & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation to business auxiliary services. c) 01-07-2003 to 15-06-2005 Taxable service means any service provided to a client, by a commercial concern, in relation to business auxiliary service. 5. The appellant is a society registered under Society Registration Act and its function is to provide various Government services under one roof. Illustrative list of such services is as hereunder. - Marriage Certificate - Police Clearance Certificate &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e government, B is the appellant and C is the public. The consideration is taken as the amount collected as 'facilitation charges'. The appellant has taken the argument that to levy service tax under the Business Auxiliary Service the service provided by a service provider has to be in relation to the business of the service provider recipient. In other words, service provided by any person to a client in relation to Business Auxiliary Service is required to be in relation to business or commerce of the service recipient. We find this argument to be very persuasive. We find that the appellant has provided facilitization services to various departments. Hence, taxability under the category would arisen onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision of service' for the purpose of levy of service tax and the amount or fee collected, if any, for such purposes can be treated as consideration for the services provided? Activities assigned to any performed by the sovereign/ public authorities under the provisions of any low are statutory duties. The fee or amount collected as per the provisions of the relevant statute for performing such functions is in the nature of a compulsory levy and are deposited into the Government account. Such activities are purely in public interest and are undertaken as mandatory and statutory functions. These are not to be treated as services provided for a consideration. Therefore, such activities assigned to and performed by a sovereign/ public aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that collecting toll on behalf of the NHAI and retaining a portion of the amount collected as commission cannot be considered as rendering Business Auxiliary Service. Similar view was taken by the Tribunal in the case of Intertoll India Consultants P. ltd. In United telecom Ltd. case, service tax demand on e-sevakendra facilities for payment of electricity bill, telephone bill, birth or death certificate etc were set aside. In smart Chip Ltd. case, the services rendered to the Transport Department to facilitate issue of driving licenses etc was held to be not covered under the Business Auxiliary Service. 10. In line with the above discussion, the impugned order is set aside and the appeal is allowed. (Order pronounced in court on 19/07/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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