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TMI Blog2024 (11) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... eace 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. The statutory functions of the police of the State Govt. make it explicit that such activity, even at request of the other person, is to be carried out only for the purpose of public security or for the maintenance of public peace or order. The charge for deployment of such additional force is also prescribed by the statutory notification issued by the State Govt. We are of the view that the activity of deploying police personnel on payment basis is to be considered as part of statutory function of the State Govt. and the fees recovered are to be considered as statutory. It is also not disputed that such amounts recovered have been deposited into the Govt. treasury. On the basis of the above discussion, we conclude that police department, which is an agency of the State Govt., cannot be considered to be a person engaged in the business of running security services. Consequently, the activity undertaken by the police is not covered by the definitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arious government organizations like Food Corporation of India etc. It appeared to the department that the appellants are engaged in providing taxable services under the category Security Agency Services; have not registered themselves and have not discharged the applicable service tax; show cause notices were issued and were confirmed by the original authorities as well as the appellate authority. In respect of ST/56006/2014 and ST/50520/2014, Revenue is in appeal against the orders passed by the Commissioner (Appeals) in favour of the appellants. 2. Representatives of the Home Guards of various districts appeared before us today and submit that the issue is no longer res integra having been decided by the Hon ble High Courts and Tribunals in various cases. They rely on the following cases: State of Punjab and Others Vs UOI Others- CWP No.24698 dated 16.03.2023 (P H). Commandant Home Guard Training Centre Vs Commissioner of CGST and ST, Udaipur 2021 (7) TMI 195. Deputy Commissioner of Police, Jodhpur Vs CCE ST, Jaipur 2016 (12) TMI 289 (CESTAT) 3. Learned Authorized Representative for the Revenue reiterates the findings of the impugned orders in respect of the appeals filed by Hom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 within the term person . It is also noteworthy that in the year 2012 when the pattern of levy of service tax was changed and the concept of negative list was introduced with effect from 1-7-2012, a definition was introduced for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 maintenance of public peace and order. The appellant cannot carry out any activity beyond the legislative competence. The user charges are levied by the State Government for the deployment of Police Force for the maintenance of public peace, security and law and order as per Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 statutory functions of the police of the State Govt. make it explicit that such activity, even at request of the other person, is to be carried out only for the purpose of public security or for the maintenance of public peace or order. The charge for deployment of such additional force is also prescribed by the statutory no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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