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TMI Blog2024 (12) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... perty, whether movable or immovable, or of any person, in any manner ? HELD THAT:- It is is clear from reading of the definitions of Security Agency and Taxable service, that to attract the levy of tax as applicable to the security agency services, the service has to be provided by a commercial concern engaged in the business of rendering services relating to security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification of any fact or activity, whether of a personal nature or otherwise, including the services of providing security personnel. It cannot be disputed that the activity that the appellant provides is essentially the providing of securi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcial concerns. It cannot be accepted that the appellant is not a commercial concern for the purposes of levy of service tax - the impugned order need not be interfered. Appeal dismissed. - HONOURABLE DR. JUSTICE A.K. JAYASANKARAN NAMBIAR AND HONOURABLE MR. JUSTICE EASWARAN S. For the Appellant: By Adv. Dr. K.P. Pradeep, By Adv. Sri. T.T. Biju, By Adv. Sri. K.P. Kesavan Nair, By Adv. Sri. Sanand Ramakrishnan, By Adv. Smt. T. Thasmi. For the Respondent: By Sri. Sreelal N. Warrier, SC, Central Board of Excise Customs. JUDGMENT DR. A.K. JAYASANKARAN NAMBIAR, J. 1. As all these appeals involve a common issue and are preferred against a common order dated 12.12.2017 of the Customs, Excise and Service Tax Appellate Tribunal, Bangalore, they are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax dues together with penalty and interest for various periods between 1998 and 2006 from the appellant. It would appear that after an initial round of litigation which culminated in an order of the Appellate Tribunal remanding the matter to the original authority for consideration as to whether or not the appellant would satisfy the definition of a commercial concern engaged in the business of rendering services relating to the security of any property, whether movable or immovable, or of any person, in any manner , the original authority once again found that the activities of the appellant would attract the definition of security agency service for the purposes of payment of service tax under the Finance Act, 1994, as amended. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matters of Ex-servicemen and their families. The appellant consequently provides opportunities to its members by guiding them for better placements on no profit no loss basis and hence, its functioning is purely on a non-commercial basis which fact has been recognized by the Governmental authorities. The Circular relied on by the appellant also mandates that on requests being received from Government Offices or private or public sector undertakings for security cover, the appellant would furnish a panel of names for selection by the undertaking concerned. On its part, the appellant would take the full responsibility of executing the security contract and making the payment to the ex-servicemen so employed on contract basis by the establishm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged in the business of rendering services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity, whether of a personal nature or otherwise, including the services of providing security personnel. 'Taxable Service' is also defined as follows: Taxable Service Taxable Service means any service provided, to a client, by a security agency in relation to the security of any property or person, by providing security personnel or otherwise and includes the provision of services of investigation, detection or verification of any fact or activity. 9. What is clear from a reading of the aforesaid defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r a concern. The said Circular which basically considers the applicability of service tax to educational institutes like IITs and IIMs, goes on to clarify that the principal activity of institutes like IITs and IIMs being the imparting of education without the objective of making profit, the said institutes cannot be seen as commercial concerns, even if for some of their activities they charged a fee. Taking cue from the above Circular, we would think that for an association like the appellant before us, the embarking on a transaction that is designed to earn income for its members, would have to be seen as a commercial venture and the appellant who embarks on such a venture, a 'commercial concern'. We say so because although it may ..... X X X X Extracts X X X X X X X X Extracts X X X X
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