Emergency Response Services, Including Police and Fire Exempt from Service Tax: CESTAT

The Customs Excise and Service Tax Appellate Tribunal (CESTAT) ruled that emergency response services, including police and fire, are exempt from service tax. G V K Emergency Management Research Institute, a non-profit organization, provided these services under contracts with state governments and maintained proper records. \r

The tribunal found no malafide intent in their non-payment of service tax for police/fire services, performed under the belief they were exempt. The bench limited the demand to the normal period of limitation, granting the appellant consequential benefits. The organization had complied with tax payments where due, prior to the show cause notice issuance.