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2009 (1) TMI 17 - AT - Service TaxActivities of field studies, evaluation studies and collection of data under the project assigned by the Government agencies - Appellant, an institute constituted by the Government of M.P. and a registered society having no profit motive contention that no service is rendered to anyone & question of payment of service tax does not arise, is accepted - demand of tax on scientific or technical consultancy and technical testing and analysis is set aside demand is also time-barred
The Appellate Tribunal CESTAT New Delhi, consisting of Mr. M. Veeraiyan and Mr. P. K. Das, recently made a judgement in 2009 (1) TMI 17. The case involved an institute constituted by the Government of Madhya Pradesh, registered under the Societies Registration Act, which was engaged in field and evaluation studies, and data collection for government projects. A show cause notice was issued proposing a tax demand on various services. The original authority confirmed the tax demand and imposed penalties, but the Commissioner (Appeals) set aside the demand for commercial training or coaching. The appellants appealed against the tax and penalties on scientific or technical consultancy, and technical testing and analysis.
During the hearing, the advocate for the appellants contested the tax demand on the grounds of merit and limitation. He argued that the institute received grants from the government for research, and hence, no service was rendered. The advocate also highlighted that the demand was time-barred, as the tax was demanded for a period between 2002 and 2004. The Commissioner (Appeals) had already set aside the penalties under Section 80 of the Finance Act, 1994, due to a lack of intent to evade tax. After considering both sides and examining the records, the Tribunal found merit in the advocate's argument regarding limitation. They noted that the institute was a non-profit entity, assisting government bodies, and that the penalties were already set aside by the Commissioner (Appeals). Consequently, the Tribunal ruled in favor of the appellants, setting aside the tax demand on scientific or technical consultancy and technical testing and analysis as being time-barred. The appeal was allowed.
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