The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on bill printing services, card personalization services provided to leading telecom companies and banks, e-Governance and e-Sewa services outsourced by the government.
The bench of Ajay Sharma (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that the activities facilitated by the appellant therein such as issue of birth and death certificate, marriage certificate, vehicle registration etc are undoubtedly in the nature of the statutory functions of the government and CBE & C vide circular No.96/07/2007-ST, dated 23.8.2007 has clarified that services which are in the nature of statutory duties of the Government are not to be treated as services provided for consideration and hence no service tax will be chargeable on the same, therefore same is not covered under the ‘Business Auxiliary Service’.
The Appellant/assessee has challenged the Order passed by the Commissioner GST & Central Excise, Mumbai East-Adjudicating Authority, confirming the service tax demand totalling Rs.24,51,04,331 alongwith penalty of Rs. 19,69,08,036/-, Rs. 47,62,057/- and Rs. 30,000/- under Sections 78,76 & 77 of the Finance Act, 1994 respectively.
The Commissioner has adjudicated six Show Cause Notices covering the period from July, 2003 to September, 2013 in respect of Printing of Bills, Personalisation of Credit & Debit Cards; and E-governance/E-seva Services.
The department contended that service of E-Governance was nothing but “Business Support Services”.
The appellant denied that it would be classifiable under the taxable service category of “Business Support Services” and took the stand that the services provided by them were Statutory/ Sovereign functions which have to be performed by the concerned Government Department.
The tribunal held that the demand of Service Tax on e-Seva/e- governance service, in any of the show-cause notices in issue before us, does not survive.
Case Details
Case Title: M/s. CMS Computers Ltd. Versus Commissioner of Central GST, Mumbai East
Case No.: Service Tax Appeal No. 86143 OF 2019
Date: 29.01.2025
Counsel For Appellant: CA Asmita Nayak
Counsel For Respondent: Shambhoo Nath
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