CESTAT quashes penalty on CISF due to lack of clarity on service tax liability

Commissioner of Central Excise & ST Vs Central Industrial Security Force (CESTAT Ahmedabad) Introduction: In a recent case before the CESTAT Ahmedabad, the question of the levy of service tax on security services provided by the Central Industrial Security Force (CISF) came into focus. The central issue revolved around whether CISF, as a government agency, was liable to pay service tax on its security services. The Adjudicating Authority had initially proposed a penalty under Section 78 of the Finance Act, 1994. However, the CESTAT Ahmedabad ultimately quashed the penalty, citing a lack of...