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TMI Blog2024 (3) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... red this Circular. There is no finding regarding the non availability of the Circular to the Appellant in the impugned order - the activity performed by the Appellant is a function to be performed by a public authority under the provisions of law and hence it does not constitute a taxable service for the purpose of levy of service tax - no service tax is leviable on such activities. Demand of service tax on the activities of Implementing IT Education under Education Department - HELD THAT:- The Department Circular No. 125/7/2010-ST issued under F.No. 354/35/2010-TRU dated 30.07.2010 categorically clarified that Levy and collection of service tax on State Government agencies/ departments implementing Centrally Sponsored Scheme under a central grant, is not legally tenable and therefore in such cases service tax should not be demanded - it is observed that even though the Appellant cited the Circular in their reply to the Notice, the adjudicating authority has not given any finding regarding the applicability of this circular in this case. This clarification clearly covers the Appellant's case. Relying on the Circular, the demand confirmed in the impugned order on this count is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Service Tax, Guwahati vide the impugned order dated 25.03.2013. He also demanded interest and imposed penalty under section 78 of the Finance Act, 1994. 3. In their grounds of appeal, the Appellant submits that the taxability on Information Technology Software Service was introduced w.e.f 16.05.2008 and therefore, such service was not in the statute book prior to 16.05.2008 and no service tax is imposable on Information Technology Software Service up to 15.05.2008. Hence, demand confirmed by the Ld. Commissioner of Central Excise and Service tax for the period from 01.04.2006 to 15.05.2008 is beyond the scope of the Finance Act, 1994 and not sustainable in law. The Appellant further submits that they have already paid Service Tax amounting to Rs. Rs.98,55,321/- on the activities which are liable to service tax and the same has been appropriated by the Ld. Adjudicating Authority in the impugned Order-in-Original No. 31/COMMR/ST/GHY/12-13 dated 25th March,2013. Further, they have also paid a sum of Rs. 11,11,390/ towards interest for late payment of service tax, which has also been appropriated in the impugned order. 4. The Appellant submits that they are disputing their service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for implementation of the Scheme Anundoram Barooah Award Scheme to promote IT Education to inspire the youth in IT Sector amongst the meritorious students, vide Notification No. PMA(S)111/2010/55 dated 21.08.2010 issued by the Education Department to the Govt. of Assam. The Appellant has received an amount of Rs. 6,84,62,915, for execution of this IT Scheme and service tax of Rs. 68,74,524/- has been confirmed in the impugned order on this amount under the category of taxable Service Business Auxiliary Service . The Appellant submits that the amount received in executing IT education implementing Anandoram Barooah Award Scheme is the Scheme of the Govt. of Assam and is not liable to service tax under the category of Business Auxiliary Service. In support of this contention, they referred Department Circular No. 125/7/2010-ST issued under F.No. 354/35/2010-TRU dated 30.07.2010' wherein it has been clarified that Levy and collection of service tax on State Government agencies/ departments implementing Centrally Sponsored Scheme under a central grant, is not legally tenable and therefore in such cases service tax should not be demanded. They also cited the decision in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ministry of Transport to the Govt. of Assam, we observe that the services rendered are in relation to issue of Driving License (DL) and Registration Certificate of Vehicles (RC) under the Motor Vehicles Act, 1988. We find that the Appellant has performed the functions of Ministry of Transport, which is a statutory function of the Govt. Hence, we observe that the fees collected by them is not taxable service under the category of Business Auxiliary Service. We observe that the Appellant has referred Circular No. 89/7/2006-ST, dated 18.12.2006 issued under F.No. 255/1/2006-CX.4,in support of their contention that they are not liable to pay service tax for these services, but the adjudicating authority has not considered this Circular. There is no finding regarding the non availability of the Circular to the Appellant in the impugned order. For the sake of ready reference the contents of the said circular is reproduced below : Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Applicability of Service tax on fee collected by Public Authorities while performing statutory functions /duties under the provisions of a law - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... performed by the Appellant is a function to be performed by a public authority under the provisions of law and hence it does not constitute a taxable service for the purpose of levy of service tax. Accordingly, we hold that no service tax is leviable on such activities. In view of the above said clarification issued by the Ministry, we hold that the service tax confirmed in the impugned order on this count is not sustainable and we set aside the same. 8.3 Regarding the demand of service tax on the activities of Implementing IT Education under Education Department mentioned at (b) in Para 4 supra, the Appellant submits that they received the amount in connection with implementing Anandoram Barooah Award Scheme which is the Scheme of the Govt. of Assam and hence it is not liable to service tax under the category of Business Auxiliary Service. In support of this contention, they referred Department Circular No. 125/7/2010-ST issued under F.No. 354/35/2010-TRU dated 30.07.2010' wherein it has been clarified that Levy and collection of service tax on State Government agencies/ departments implementing Centrally Sponsored Scheme under a central grant, is not legally tenable and there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly tenable and therefore in such cases service tax should not be demanded. 4. Trade Notice/Public Notice may be issued to the field formations. 5. Please acknowledge receipt of this Circular. Hindi version follows. 8.4. We observe that the above Circular categorically clarified that Levy and collection of service tax on State Government agencies/ departments implementing Centrally Sponsored Scheme under a central grant, is not legally tenable and therefore in such cases service tax should not be demanded.. We observe that eventhough the Appellant cited the Circular in their reply to the Notice, the adjudicating authority has not given any finding regarding the applicability of this circular in this case. We observe that this clarification clearly covers the Appellant's case. Relying on the Circular, we hold that the demand confirmed in the impugned order on this count is not sustainable and accordingly, we set aside the same. 8.5. Regarding the service tax demand on the amount received in respect of Imparting IT Education under Rajiv Gandhi Computer Literacy Programme in Schools of Assam, we find that the amount has been collected by the Appellant for implementing the Central G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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