Asansol Durgapur Development Authority Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
CESTAT Kolkata held that Asansol Durgapur Development Authority [ADDA] performing sovereign functions on behalf of the State Government of West Bengal is exempt from service tax. Accordingly, service tax not leviable.
Facts- The Appellant, ASANSOL DURGAPUR DEVELOPMENT AUTHORITY [ADDA for short] constituted under Sections 11(1) and 11(3) of The West Bengal Town and Country (Planning and Development) Act, 1979. The appellant was rendering various services, but not paying Service Tax, a Show Cause Notice dated 12.10.2012 was issued demanding service tax of 28,39,01,510 for the period 2007-08 to 2011- After due process, the Commissioner, CX & ST, Bolpur, dropped the duty demand of Rs. 25,43,53,109 and confirmed the demand of Rs.2,95,48,401. Being aggrieved by the confirmed demand, the appellant – assessee [ADDA] is before the Tribunal. The Revenue being aggrieved by the demands so dropped, have preferred their own appeal against the said impugned order.
Conclusion- Held that the ADDA has been created under a specific statute and it performs all acts on behalf of the State Govt of West Bengal. Their accounts, income and expenditure etc. are all controlled by and are answerable to the State Government. Therefore, we have no hesitation to come to a conclusion that ADDA is performing sovereign functions on behalf of the State Government of West Bengal.
