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TMI Blog2024 (12) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... tax at the rate of 12.36% under the category Technical Testing and Analysis Service and the same has been made applicable with effect from 01.07.2003 - the stand of the petitioners is that they are licensed manufacturers of guns, their units are located in Jammu and the promoters of the petitioners are also permanent residents of J K - HELD THAT:-Though the learned counsel for respondents have not disputed the provisions of Section 64 (Chapter V) of the Finance Act, 1994 excluding the applicability of the service tax to the State of J K, yet their argument is that in terms of Rule 4 of the Place of Provisions of Services Rules, 2012, the place where the services are actually performed, the service tax is leviable to justify the demand of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdwaj, Sr. Advocate. Mr. Sunil Sethi, Sr. Advocate, with Mr. Mohsin Bhat, Advocate. For the Respondents Through: Mr. L.K. Moza, CGSC. JUDGMENT TASHI RABSTAN CJ 1. In OWP No. 145/2010 the petitioner-firm has challenged Communication No. T 1000 dated 13.11.2009, in OWP Nos. 963/2009, 966/2009 and 1400/2009 the petitioners-firms have challenged Communication No. KH/6519/GEN/V/102 dated 30.06.2009, whereas in OWP No. 955/2010 the petitioner-firm has challenged Communication No. T 1000 dated 27.07.2010, issued by respondent No. 2 in these petitions, whereby the Service Tax is sought to be imposed upon the Shot Gun Manufacturers including the petitioners-firms herein at the rate of 12.36%. 2. Since the controversy involved in all these petitions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax was imposed upon respondent No. 2 but, instead of paying the same, respondent No. 2 has shifted the burden on the gun manufacturers including the petitioners herein. The further stand of petitioners-firms is that as per the Central Excise Law Manual, service tax is not applicable to the State of J K. Since the taxable services are being consumed in the State of J K, the same are not liable to service tax in terms of the Finance Act, 1994, as the said Act has not been extended to the State of J K. 6. Objections have been filed on behalf of respondents averring therein that the service tax is an indirect tax and is to be paid on all the services notified by the Government of India. Further, the service tax is to be charged from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble with effect from 01.07.2003. However, the stand of the petitioners is that they are licensed manufacturers of guns, their units are located in Jammu and the promoters of the petitioners are also permanent residents of J K. Therefore, they are not liable to pay the service tax as Section 64 (Chapter V) of the Finance Act, 1994 excludes the applicability of the service tax to the State of J K. 9. Though the learned counsel for respondents have not disputed the provisions of Section 64 (Chapter V) of the Finance Act, 1994 excluding the applicability of the service tax to the State of J K, yet their argument is that in terms of Rule 4 of the Place of Provisions of Services Rules, 2012, the place where the services are actually performed, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by holding that periodical testing of gas cylinder is a statutory requirement under Indian Explosives Act 1884 and therefore, it is not an activity covered for service tax either under maintenance and repair services or technical inspection and certification services and having aggrieved about the said order, Civil appeal filed before Hon'ble Supreme Court was dismissed on 05.01.2011. 10. Based on the said order, the office of Commissioner of Customs, Central Excise and Service Tax, Bhopal issued circulation 21.02.2012 by providing as under:- ............... Activities assigned to and performed by the sovereign/public authorities under the provisions of any law are statutory duties. The fee or amount collected as per the provisions of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enior Quality Assurance Officer, being authorised office for testing, and the petitioners having paid only testing fee for fire arms, which is a statutory requirement under Rule 22 of the Arms Rules, 1962, no service tax can be levied on the petitioners who are granted license under Section 5 of the Arms Act, 1950 even if the service provider i.e. the Senior Quality Assurance Officer is in Kanpur where Section 64 of the Finance Act, 1994 is applicable. 11. In view of the ratio already laid down by this Court and considering the nature of work attended to by the petitioners-firms, we find that there can be no service tax liability on the charges to be paid by the petitioners herein. Hence, there is no question of interest payable by them. 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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