9911796707
TMI Blog2022 (2) TMI 956X X X X Extracts X X X X X X X X Extracts X X X X ..... l sovereign functions - the Revenue ought not to have compelled MIDC to prefer Appeals before Appellate Tribunal - The said order of Hon ble Bombay High Court has been accepted by the Board as per letter F No. 276/203/2017-CX.8A dated 15.02.2018. Since the issue is squarely covered in favour of the appellant in their own case, the impugned order cannot be sustained - appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 85718 of 2014 - A/85121/2022 - Dated:- 18-2-2022 - MR ANIL CHOUDHARY, MEMBER (JUDICIAL) AND MR C J MATHEW, MEMBER (TECHNICAL) Shri A.R. Krishnan, Advocate, for the Appellant Shri Shambhu Nath, Commissioner, Authorised Representative for the Respondent ORDER This appeal is directe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 (Bom.)]. ii. Maharashtra Industrial Development Corporation [Order dated 28.02.2018 of Hon ble Bombay High Court]. iii. Maharashtra Industrial Development Corporation [Order No. A/85132/18 dated 29.01.2018 of the Tribunal]. The Assistant Commissioner of GST CX vide his letter dated 23.11.2021 has informed that the Board has decided not to challenge the order of Hon ble Bombay High Court in Hon ble Supreme Court as per letter issued vide F No. 276/203/2017-CX.8A dated 15.02.2018. Accordingly this appeal may be allowed. 5. Learned AR reiterates the findings recorded in the impugned order. 6.1 We have considered the impugned order along with the submissions made in appeal and during the course of argument. 6.2 We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndertaken 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 such authority performs service which is not in the nature of statutory activity and the same is undertaken for a consideration which is not in the nature of statutory fee, Service Tax would be leviable if the activity undertaken otherwise falls within the ambit of Taxable Service. 7 . Going by the show cause notice, the al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate 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 and manage the industrial estates at places selected by the State Government. Clause (a) of Section 2 of MID Act defines amenity which reads thus : amenity includes road, supply of water or electricity, street 2(a) lighting, drainage, sewerage, conservancy and such other convenie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 carries on business and is intended for making profits. When profits are earned by such a Corporation they are distributed to shareholders by way of dividends or kept in reserve funds. In the present case, these attributes of a trading Corporation are absent. The Corporation is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 industrial estates as provided in Section 14. Therefore, it is the statutory obligation of the MIDC to provide amenities as defined in clause (a) of Section 2 of the MID Act to the industrial estates established by it. Thus, it is the statutory obligation ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
