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TMI Blog2023 (2) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... irector shall cause tractor cultivation to be carried out on the land of the cultivator. The view that has been taken is supported by the judgment of the Supreme Court in Krishi Upaj Mandi Samiti vs. Commissioner of Central Excise [ 2022 (2) TMI 1113 - SUPREME COURT ] where it was held that it does not provide that on deposit of the money received by the Market Committees into the Government Treasury/sub-treasury or a bank duly approved, it ceases to be the Market Committee Fund. It will continue to be the Market Committee Fund. Even it is the case on behalf of the appellants that the fees collected, which will be deposited in the Market Committee Fund will be utilized by the Market Committee for expanding/benefit of the Market Committee etc. In the instant case, it is seen that a mandatory duty has been cast upon the appellant to provide tractor cultivation on the land of the cultivator if the application of the cultivator is accepted and a bond is executed on payment of charges as specified in the Act and the Rules. Such charges are also deposited in the District Treasury by the appellant - The Principal Commissioner, therefore, committed an error in concluding that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h as ploughing, eradication of kans, harrowing, discing, sowing or harvesting which may be performed by tractors. Section 4 of the Act provides that the Director may accept or reject the application received under section 3 and where he accepts the application he shall call upon the cultivator to execute a bond. Under section 5, on the cultivator executing the bond under section 4, the Director shall cause tractor cultivation to be carried on the land of the cultivator. On completion of the work of tractor cultivation, the Director shall, by notice, inform the cultivator of the tractor cultivation charges and call upon him to make the payment to the Collector in the manner specified. Sub-section (3) of section 5 provides that the tractor cultivation charges shall be payable in such number of annual installments not exceeding ten as may be specified in the notice. Subsection (4) of section 5, provides that if any installment of tractor cultivation charges together with the interest thereon is not paid by the due date, it shall be recoverable by the Collector from the cultivator as arrears of land revenue. Section 7 of the Act provides that the State Government may, by notification, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fitness certificate to the vehicles: the Directorate of Boilers inspects and issues certificate For boilers, or Explosive Department inspects and issues certificate for petroleum storage tank, LPG/CNG tank n terms of provisions of the relevant laws. Fee as prescribed is charged and the same is ultimately deposited into the Government Treasury. A doubt has arisen whether such activities provided by a sovereign/public authority required to be provided under a statute can be considered as 'provision of service' for the purpose of levy of service tax. 2. The issue has been examined. The Board is of the view that the activities performed by the sovereign/public authorities under the provision of law are in the nature of statutory obligations which are to be fulfilled in accordance with law. The fee collected by them for performing such activities is in the nature of compulsory levy as per the provisions of the relevant statute, and it is deposited into the Government treasury. Such activity is purely in public interest and it is undertaken as mandatory and statutory function. These are not in the nature service to any particular individual for any consideration. Therefore, su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor for carrying out tractor cultivation in whole or part of his land. If the application is accepted, a bond has to be executed by the cultivator and on execution of the bond, the Director shall cause tractor cultivation to be carried out on the land of the cultivator. Sub section (2) of Section 5 of the Act provides that on completion of the work of tractor cultivation, the Director shall inform the cultivator of the tractor cultivation charges and call upon him to make the payment to the Collector or such other officer as the Collector may specify and forward a copy of the notice to the Collector for the purpose of recovery of the tractor cultivation charges. Rule 7(c)(i) of the Rules provides the scale of tractor cultivation charges. It is also clear from the challan that has been produced that the amount is deposited in the Treasury at Itarsi, District Hoshangabad. 12. The view that has been taken is supported by the judgment of the Supreme Court in Krishi Upaj Mandi Samiti vs. Commissioner of Central Excise [ 2022 (58) GSTL 129 (SC) ] and the relevant observations are as follows: 9. In the present case, it is the case on behalf of the appellants that the activity of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmittee Fund will be utilized by the Market Committee for expanding/benefit of the Market Committee etc. (emphasis supplied) 13. In the instant case, it is seen that a mandatory duty has been cast upon the appellant to provide tractor cultivation on the land of the cultivator if the application of the cultivator is accepted and a bond is executed on payment of charges as specified in the Act and the Rules. Such charges are also deposited in the District Treasury by the appellant. 14. The Principal Commissioner, therefore, committed an error in concluding that the services performed by the appellant are not statutory in nature as they have not been performed in terms of specific responsibility assigned to it under the law in force. The Principal Commissioner was, therefore, not justified in confirming the demand of service tax. 15. Such a being decision, even if it is held that the services provided by the appellant fall under the category of supply of tangible goods‟, then too by virtue of the Circular dated December 18, 2006, the appellant cannot be called upon to pay any service tax. 16. The order dated 29.12.2005 passed by the Principal Commissioner, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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