Case Law Details
Whether security provided by government to Tea Plantation owners in Assam in order to protect from terrorists liable to SERVICE TAX?
Mcleod Russel (India) Limited having its registered office at 4, Mangoe Lane, Kolkata has tea plantations in the state of Assam and the area is highly volatile and acts of vandalism being carried out by terrorists. The consortium of tea plantation owners approached government for protection as it was causing financial loss and was detrimental to the interest of the revenue. A special task force consisting of police officers and home guard was created and the cost of salary was reimbursed by the tea plantation owners to the government. The task force (AISF) was not having power to carry out any investigation and in case they detect any commission of cognizable offence, they have to report the same to the nearest police station.
The Revenue issued SCN to Mcleod in apropos of the aforesaid service and opined that the said service is support service provided by the government and thus squarely covered under the ambit of service tax.
It is pertinent to note that –
“Support services have been defined in section 65B of the Act as infrastructural, operational, administrative, logistic marketing or any other support of any kind comprising functions that entities carry out in ordinary course of operations themselves but may obtain as services by outsourcing from other for any reason whatsoever and shall include advertisement and promotion, construction or works contract, renting of movable or immovable property, security, testing and analysis.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Sir, I am an Inspector in Central Excise & Service Tax Department. I want to know about Adjudication Order by the Revenue after Hon’ble High Court’s above order. please reply to my e-mail.