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CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL

CHANDIGARH

REGIONAL BENCH - COURT NO. I

Service Tax Appeal No. 51870 of 2017

[Arising out of Order-in-Appeal No. 56-ST/DLH/2017 dated 29.08.2017 passed by

the Commissioner (Appeals), CGST, New Delhi]

Department of Police ……Appellant

Mini Secretariat, G.T. Road,

Panipat, Haryana-132103

VERSUS

Commissioner of Central Excise, ……Respondent

Goods & Service Tax, Panchkula

GST Bhawan, Sector-25, Panchkula,

Haryana-134116

APPEARANCE:

Shri Gaurav Gupta, Advocate for the Appellant

Shri Yashpal Singh, Authorized Representative for the Respondent

CORAM: HON’BLE MR. S. S. GARG, MEMBER (JUDICIAL)

HON’BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL)

FINAL ORDER NO.60350/2026

DATE OF HEARING: 12.05.2026

DATE OF DECISION: 15.05.2026

P. ANJANI KUMAR:

Department of Police, Panipat, Haryana have filed this appeal

against the Order-in-Appeal dated 29.08.2017 passed by the

Commissioner (Appeals), CGST, New Delhi.

2 ST/51870/2017

2. Brief facts of the case are that the appellants are providing

security to various banks as per an arrangement with them.

Revenue was of the opinion that the service rendered by them

amounted to Security Agent Service taxable under Section 65(94) of

the Finance Act, 1994 w.e.f. 16.10.1998; accordingly, a SCN dated

14.10.2014 was issued to the appellants seeking to recover service

tax of Rs.33,32,921/- along with interest and penalty. The demand

was confirmed by the Order-in-Original dated 22.01.2016 and was

upheld by the impugned order. Hence, the present appeal.

3. Shri Gaurav Gupta, leaned counsel for the appellants submits

that the issue is no longer res integra being decided by the Tribunal

and High Courts in various cases. He further submits that the

services rendered by the appellants are in discharge of sovereign

functions rather than the service rendered for a consideration. He

further submits that CBEC vide Circular No.89/7/2006 dated

18.12.2006 has clarified that activities performed by Sovereign

Public Authorities in the nature of statutory obligations are not

exigible to service tax. He relies on the following cases:

 Commissioner v. Dy. Commissioner of Police,

Jodhpur - 2018 (11) G.S.T.L. J133 (S.C.)]

 Dy. Commissioner of Police, Jodhpur Vs Commr. Of

C. Ex. & S.T., Jaipur-II, 2017 (48) S.T.R. 275 (Tri.-

Del) [25- 11-2016]

 Senior Superintendent of Police Gurdaspur Vs

Commissioner of Central Excise and Service Tax,

3 ST/51870/2017

Chandigarh, Service Tax Appeal No. 51693 of 2015

[08.10.2025]

 Senior Superintendent of Police Ferozepur, Punjab

Vs Commissioner of Central Excise And Service

Tax, Ludhiana, Service Tax Appeal No. 60852 of

2018 [17.09.2025]

 Superintendent of Police Vs Union of India, (2024)

22 Centax 223 (Mad.) [25-06-2024]

 Dy. Inspector General of Police Vs Commissioner of

C. Ex., Bhopal, 2017 (3) G.S.T.L. 159 (Tri.-Del)

[10-03- 2017]

 Jamnagar Police Vs C.C.E. & S.T.-Rajkot, Service

Tax Appeal No. 13606 of 2014-DB [04.12.2023]

 Mumbai Police Vs Commissioner of Service Tax,

Mumbai-I, [2018] 92 taxmann.com 92 (Mumbai

CESTAT) [23-03-2018]

4. Shri Yashpal Singh, learned Authorized Representative for the

Department reiterates the findings of the impugned order.

5. Heard both sides and perused the records of the case. We find

that the issue is squarely covered by various decisions cited by the

appellants. This Bench, vide Final Order No. 61487/2025 dated

08.10.2025 decided the issue in favour of the appellants therein i.e.

Senior Superintendent of Police, Gurdaspur, by holding that:

5. Further, we find that this issue is no more res

integra and has been decided by the Tribunal in various

cases. This Tribunal vide its earlier Final Order in the case of

4 ST/51870/2017

Senior Superintendent of Police Ferozepur vs. CCE & ST,

Ludhiana [Final Order No. 61401/2025 dt. 17.09.2025 in

Appeal No. ST/60852/2018] has considered the identical

issue and has held as under:

"6. After considering the submissions made by

both the parties and perusal of the material on record,

we find that the only issue invol