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TMI Blog2019 (11) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... authority for carrying out any statutory function will not be liable for service tax fees if three conditions are fulfilled. There is no doubt in the entire proceedings that the amount so received was deposited in the Government treasury. Thus, all conditions required in the above circular of CBEC are fulfilled. Therefore, no service tax chargeable under Security Agency Services upon the Appellant. The CBEC circular being binding on the department, a demand to the contrary is not sustainable and needs to be set aside. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 52890 of 2016-[DB] - Final Order No: 51388/2019 - Dated:- 22-10-2019 - HON BLE MR. JUSTICE DILIP GUPTA, PRESIDENT AND HON BLE MR. P VENKTA SUBBA RAO, MEMBER (TECHNICAL) Shri Vijay Kumar, Advocate - for the appellant Shri A Thaplial Authorized Representative - for the respondent ORDER P V Subba Rao: 1. This appeal is directed against the Order-in-Appeal No. 247(AK)ST/JPR/2016 dated 21.07.2016. A Show Cause Notice dated 19.04.2012 was issued to the appellant alleging that the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncludes the services of investigation detection or verification, of any fact or activity, whether of a personal nature or otherwise, including the services of providing security personnel . 6. The service of the Security Agency is made taxable under Section 65(105) (w) of the Finance Act, 1994 which reads as follows; any service provided or to be provided to any person, by a security agency in relation to the security of any property or person in any manner and includes the service of investigation, detection or verification of any fact or activity . 7. The appellant contested the Show Cause Notice on the ground that the Police Department is not engaged in profit making activities but is mandated by law to provide security to public. In some case the law required them to collect some fees for such services and the amounts so collected are deposited in the Government Exchequer. Therefore, they are not liable to pay service tax. The lower Authorities did not agree with this contention holding that with effect from 01.05.2006 the term commercial concerns in the definition of Security Agency has been replaced with any person which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Security Agency Service as per the clarification issued by the CBEC letter F. No. 137/131/2010-CX dated 20.05.2011. Accordingly, he upheld the order of the Original Authority. The learned Counsel for the appellant submits that the question to be answered in this case is whether the amount collected by the Police Department providing guards to various banks and other organisations is liable to service tax under the category of Security Agency Service . He submits that as per the Rajasthan State laws, Rajasthan Police has been providing services to various banks for fee levied as per the Government functions and such activity was held to be not Security Agency Service and the case of Superintendent of Police vs. CCE, Udaipur Final Order No. 53866-53867/2017 dated 21.06.2017, Deputy Commissioner of Police Jodhpur vs. Commissioner of Central Excise [2017(48) STR 275(Tri.-Del) and DIG vs. Commissioner of Central Excise, Bhopal [2017(3) GSTL 159 (Tri.-Del.)]. Therefore, this case may be decided, accordingly, and their appeal may be allowed. 10. He further argued that in order for this activity to be treated as Security Agency Service they should in the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treasury of the State Government. Thus, they fulfilled all their conditions and are not liable for payment of service tax. 13. Per contra, learned Departmental Representative reiterates the findings of the lower authorities and asserts that the service tax is payable on the amount received by the appellant for providing security to the banks. He would submit that the Central Industrial Security Force is a Central Police Organisation performing exactly similar functions of providing security to the ports, airports etc. They charge an amount per person of different ranks from their clients, viz, the ports and airports etc. CISF has been paying service tax on these services. Maintenance of law and order and providing general security to the people and providing security to commercial concerns for a price are two distinct functions. He would argue that latter does not form part of the statutory functions of the Police, and therefore, is liable to service tax. Statutory function are those which the state alone can perform and providing guards is not one such function. 14. We have considered the argument of both sides and perused the records. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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