2024 (10) TMI 948 - HC - GST

Levy of service tax - income accruing on account of affiliation - HELD THAT - The issue is squarely covered by the order of the division bench of this Court in PRINCIPAL ADDITIONAL DIRECTOR GENERAL DIRECTORATE GENERAL OF GST INTELLIGENCE BENGALURU ZONE UNIT, PRINCIPAL COMMISSIONER OF CENTRAL GST BENGALURU, CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, UNION OF INDIA, ASSISTANT COMMISSIONER OF CENTRAL TAX BENGALURU VERSUS M/S. RAJIV GANDHI UNIVERSITY OF HEALTH SCIENCES, KARNATAKA, 2024 (8) TMI 209 - KARNATAKA HIGH COURT . The division bench has held that service tax cannot be levied on the income accruing on account of affiliation. Hence, the authorities concerned are not justified in levying service tax on the income accruing on account of affiliation during the academic year July 2012 to March 2017 and April 2017 to June 2017. Therefore, the show cause notices issued by the authorities concerned are liable to be set aside. Accordingly, they are set aside. The Writ of Certiorari is ordered. The show cause notice dated 29.03.2018 issued by the Additional Director General, Directorate General of GST Intelligence, Belagavi Zonal Unit, Belagavi - first respondent vide Annexure-A and also the show cause notice dated 22.07.2019 issued by the Assistant Commissioner of Central Tax and Central Excise, Belagavi City Division, Belagavi-fifth respondent vide Annexure-S are quashed. The Writ Petition is allowed.

Summary

The High Court of Karnataka quashed show cause notices demanding service tax, citing a previous division bench order that service tax cannot be levied on income from affiliation. The Writ of Certiorari was ordered, and the show cause notices were set aside. The Writ Petition was allowed.