No Service Tax on Octroi Collection in discharge of Sovereign Privilege

Traffic Manager Vs Commissioner of Service Tax-I (CESTAT Mumbai) The issue under consideration is whether the service tax is applicable to the collection of Octroi for entry of goods in the discharge of sovereign privilege? CESTAT states that collection of octroi by the appellant, on examination of the legal framework, finding it useful to restate the foundations. That levy and collection of tax is a sovereign privilege and must have authority of law enacted by the Union Parliament or the legislatures of constituent states is not in dispute. It is also not in doubt that List II of the Seventh ...