𝗖𝗘𝗦𝗧𝗔𝗧 𝗞𝗼𝗹𝗸𝗮𝘁𝗮 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗖𝗼𝗮𝗹 𝗠𝗶𝗻𝗲𝘀 𝗣𝗿𝗼𝘃𝗶𝗱𝗲𝗻𝘁 𝗙𝘂𝗻𝗱 𝗔𝗱𝗺𝗶𝗻𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝘃𝗲 𝗖𝗵𝗮𝗿𝗴𝗲𝘀 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Administrative charges collected under statutory provisions do not qualify as 'consideration' for a taxable service, as there is no service provider-service recipient relationship."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Coal Mines Provident Fund Organization 𝗜𝘀𝘀𝘂𝗲: Is service tax applicable to the administrative charges collected by CMPFO? 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: Collection of a 3% administrative charge from coal companies for managing a provident fund for workers, under statutory authority.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that administrative charges collected by CMPFO for fund management are statutory and do not qualify as 'consideration' under service tax law. With no service provider-recipient relationship, there is no service tax liability. Consequently, CMPFO is exempt from service tax on these charges, and the appeal was allowed.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Coal Mines Provident Fund Organization vs. Commissioner of Central Excise & Service Tax, Dhanbad 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼.75540 of 2015 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 09 June 2023 📜 This ruling confirms that statutory charges collected for fund management are not liable for service tax, reinforcing the distinction between statutory function and taxable services.