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TMI Blog2018 (2) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... t as service charge. The case of the Revenue is that the appellant is liable to pay service tax on such service under the category of Maintenance, Management or Repair Service . 2. Shri A.R. Krishnan, Ld. Chartered Accountant appearing on behalf of the appellant, at the outset submits that the very same issue in the appellant's own case has been decided by this Tribunal reported at Maharashtra Industrial Development Corporation Vs. CCE 2014-TIOL-2022-CESTAT-MUM. Against the said order of this Tribunal the Revenue has challenged the same before the Hon'ble Bombay High Court. The Hon'ble Bombay High Court in a detailed and reasoned order upheld Tribunal order, therefore the issue herein stands settled in favour of the appellant. 3. Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able service to a person and, 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." (underlines supplied) 6. Thus, the activities performed by sovereign or public authorities under the provisions of law which are in the nature of statutory obligations are covered by clause 2 which provides that the fee collected by such sovereign or public authorities for performing such activities is in the nature of compulsory levy. Only if s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment, growth and development of industries in the State of Maharashtra, and (ii) in particular, and without prejudice to the generality of clause (i), to - (a) establish and manage industrial estates at places selected by the State Government; (b) develop industrial areas selected by the State Government for the purpose and make them available for undertakings to establish themselves; (d) undertake schemes or works, either jointly with other corporate bodies or institutions, or with Government or local authorities, or on an agency basis, in furtherance of the purposes for which the Corporation is established and all matters connected therewith." (emphasis added) 9. Hence, one of the statutory functions of MIDC is to establish an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion could sell property, namely, transfer land; that the Corporation had borrowing powers; and that the Corporation was entitled to moneys by way of rents and profits. Reliance was placed on the report of the Corporation and in particular on the income and expenditure of the Corporation to show that it was making profits. These features of transfer of land, or borrowing of moneys or receipt of rents and profits will by themselves neither be the indicia nor the decisive attributes of the trading character of the Corporation. Ordinarily, a Corporation is established by shareholders with their capital. The shareholders have their Directors for the regulation and management of the Corporation. Such a Corporation set up by the shareholders carri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustrial Development Corporation. The Apex Court held that the said Corporation discharges sovereign functions. The Apex Court also held that considering the objects and purport for which the said Corporation of Haryana has been constituted, the function discharged by the Corporation must be held as Governmental function. 12.We have already referred to Section 14 of the MID Act which provides that the function of the MIDC is not only to develop industrial areas but to establish and manage industrial estates. The role of MIDC is not limited only to establishing industrial estates and allotting the plots or buildings or factory sheds to industrial undertakings. The function and obligation of the MIDC is also to manage and maintain the said i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Tribunal. Not only that MIDC was driven to prefer Appeals before the Appellate Tribunal, this group of Appeals were preferred by the Revenue. Needless to add that MIDC was required to incur huge expenditure on litigation. All this could have been avoided by the Appellant. 15.Therefore, we propose to saddle the Appellant with costs of Rs. 10,000/- in each Appeal. We dismiss the Appeals. We direct the Appellant to pay costs quantified at Rs. 10,000/- in each Appeal to the Respondent MIDC within a period of one month from the date on which this judgment and order is uploaded. Place the Appeals for reporting compliance regarding payment of costs on 12th October, 2017 under the caption of Directions". From the above judgment of the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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