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TMI Blog2018 (4) TMI 418X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellants are providing security to banks, individuals, security for cricket matches, IPL, World Cup, Mumbai Port Trust, Mazagaon Dock, Tata Power, FCI and for other functions. They were issued show cause notice demanding service tax on the charges recovered by them for providing security on the ground that they are liable for service tax under the category of "Security Agency Services". The demand was confirmed by the adjudicating authority alongwith interest and penalty u/s 76, 77 and 78 were also imposed. Hence the present appeal. 2. Shri S.S. Gupta, ld. CA appearing for the Appellant submits that the police is deployed to individuals or to places for the purpose of maintaining law and order. That they perform sovereign functions as held in case of Dy. Commissioner of Police, Jodhpur 2017 (48) STR 275 AND Dy. Inspector General of Police 2017 - 11-TMI-346 and thus not liable for tax. That no proceedings can be initiated against the Appellant without implicating the State as held in case of Divisional Railway Manager 2014 (34) STR 297. He submits that the issue is no more disputed as it stands decided in case of Appellant. 3. Shri Roopam. Kapoor, ld. (AR) supports the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n" appearing in the definition must be construed to be a natural person as well as a juristic person and by no stretch of imagination, the same will include the State or its officers or the posts created under a statute. They cited the judgment of the Constitution Bench of the Hon'ble Supreme Court in the case of West Bengal v. Union of India [AIR 1963 SC 124] in which the Apex Court has held as under :- "the definition is an enlargement of the natural meaning of the expression 'person', even the extended meaning does not include the State." Their submission is that Superintendent of Police is an authority of the State Govt. to carry out statutory and constitutional duties. The definition of the term "person", (which does not cover the Govt.) in the General Clauses Act, 1897 is given as follows :- "42. "Person" shall include any company or association or body of individuals, whether incorporated or not,". In the light of the definition of the term "person" in the General Clauses Act, 1897, which has also been examined and clarified by the Apex Court, it would appear that the Superintendent of Police, which is an agency of the State Govt. does not appear to be covered w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y should be categorized as one which is liable to payment of service tax. The circular clarifies that charges recovered by any sovereign/public authority for carrying out any statutory function will not be liable for levy of service tax if all the following conditions are satisfied :- (a) Sovereign/public authorities perform duties which are in the nature of statutory and mandatory obligation to be fulfilled in accordance with the law. (b) The fee collected should be levied as per the provision of relevant law. (c) The amount collected is to be deposited into Government treasury. The satisfaction of each of the above three conditions is analysed below :- (i) A sovereign/public authority performs duties which are in the nature of statutory and mandatory obligation to be fulfilled in accordance with law. The Superintendent of Police is an extended arm/instrumentality/ agency of the State Government and is controlled and managed by the State Government. It is carrying out the activities as entrusted to it vide the Police Act which are statutory and constitutional in nature. The appellant is required to discharge these statutory obligations for public security and mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson only for the purpose of public security or for the maintenance of public peace or order. The fees levied and collected for this purpose is strictly as per the notification issued by the State Govt. under the above Section of the Act. The amounts so collected are mandatorily deposited into the Govt. treasury. Accordingly, they have submitted that all the conditions stipulated by the C.B.E. & C. circular are satisfied and consequently the activities are to be considered as statutory function and no service tax can be levied on such fees collected for discharging the sovereign function. The lower authorities have, however, taken the view that the activity undertaken is not in the nature of statutory duty, but an activity undertaken for a consideration which is not a statutory fee. We find ourselves unable to agree to this stand taken by the lower authorities. The police department has the mandatory duty to maintain public peace and order. For such duty, which is in the nature of sovereign function, no charges are recoverable from the citizens. In the present case, the police department has recovered fees for deploying additional police personnel on request. However, the statu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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