Service Tax Exemption On Quality Assurance Charges for Testing Rifles: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on the quality assurance charges for testing rifles.The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that the assessee is engaged in an activity that is purely in the public interest and is undertaken as per mandatory and statutory functions. He drew attention to Rule 22 of the Arms Rules, 1962, which states that proof testing of...