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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 ..... laced. The business auxiliary service is rendered in relation to the business of the recipient. In the present case, the service of facilitization has been rendered to the Govt departments, which are engaged not in business but in rendering public services. Hence we find that the present case fails the basic test prescribed by CBEC in the circular dated 23.08.2007 that for charging service tax, the service should not be in the nature of statutory duties of the government. Therefore, the impugned order is set aside. - Decided in favour of appellant - ST/1547/2011 (DB) - Final Order No. A/60939/2016-CU(DB) - Dated:- 19-7-2016 - Mr. Ashok Jindal, Member (Judicial) and Mr. V. Padmanabhan, Member (Technical) Shri A. A. Batra, C. A. for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtments/agencies and after issuance of required permissions/ approvals thereupon by the concerned Govt departments/agencies these are handed over back to the applicants. These SUWIDHA centers do provide society s services as front office/help desk of Govt. department/agencies, handling the statutory and non-statutory work and receive payments on their behalf which otherwise these department/agencies would have attended themselves. The appellant has been registered as a Society under Society Registration Act XXI of 1860 and acts as per guidelines of the Punjab State e-governance Society with a view to provide various Govt. Services under one roof and is charging facilitation charges over and above the Govt. statutory fees prescribed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] (d) Intertoll India Consultants (P) Ltd. Vs. Commr of Ex.,Noida [2011 (24) STR 611 (Tri.-Del.)] (e) Yardstick Technologies Pvt Ltd. Vs. Commr of ST.Mumbai-II [2014 (10) TMI 521 - CESTAT Mumbai] 4. The definition of Business Auxiliary Service during the period of dispute has under gone several charges but the portion of the definition which is relevant for the present proceedings is given below: Businesss Auxiliary Service Means any service in relation to- (i) ----------- (ii) ----------- (iii) ----------- (iv) ----------- (v) ----------- (vi) Provision of service on behalf of the client, (vii)-------- Taxable Clause Section 65(105)(zzb) of Finance Act, 1994 reads as under: a) With effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e government to the appellant for provision of services to the public on behalf of the government. 7. For rendering business Auxiliary Service, there will be three persons e.g. A, B And C. If B provides the service to C on behalf of the A, then B is said to render business auxiliary service. The consideration for the services would be paid by A to B. The view taken by the Revenue is that A is the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment inspects and issues certificate for petroleum storage taken, LPG/CNG tank in terms of provisions of the relevant lows. Authorities providing such functions, required to be performed as per low, may collect specific amount of fee and the amount so collected is deposited into government account. Whether such activities of a sovereign / public authority, performed under a statute, can be considered as 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not in business but in rendering public services. Hence we find that the present case fails the basic test prescribed by CBEC in the circular dated 23.08.2007 that for charging service tax, the service should not be in the nature of statutory duties of the government. 9. This Tribunal in several decisions and also the Hon ble High Court in several decisions has taken similar views. In Ideal Road Builders P. Ltd . case, the Tribunal has taken the view 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. ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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