Services of civic bodies not taxable, rules High Court Therefore, owner of the immovable property is not liable to pay tax under Section 66 of the Finance Act, 1994 for the period up to June 30, 2012. Share Via Email | A+A A- By Express News Service CHENNAI: Services provided by sovereign bodies like municipalities are not taxable, the Madras High Court has ordered, and quashed notices issued by the GST and Central Excise department against two such civic bodies. The issue pertains to Virudhachalam and Cuddalore municipalities moving pleas seeking to quash the demand notices of the GST and Central Excise department over levying service tax on the services provided by the civic bodies in public spaces.