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TMI Blog2018 (2) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... on being pointed out by the department and much before the issuance of the SCN - the imposition of penalty for the period from Apr,'13 to July, '13 is not justified. Appeal allowed in part. - ST/41421/2015 - 42325/2017 - Dated:- 25-9-2017 - Smt. Sulekha Beevi C.S, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) For the Appellant - Shri Prasanna Krishnan, Cons. For the Respondent - Shri B. Balamurugan, AC (AR) ORDER Per: Bench The appellants are engaged in providing Residential Complex Services, Construction of Commercial or Industrial Complex Services and Works Contract Services. They have two divisions, namely, (i) Internal Division, which is engaged in rendering Works Contract Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax liability for the period Oct. '08 to Jun.'12 was therefore not sustainable. Ld. consultant adverted to the financial statements of the customers of the appellants, namely, M/s. SRMIST and M/s. VS and argued that the revenue collected from educational activities of the customers are very high when compared to the value of other taxable services rendered by such customers. In the case of M/s. SRMIST, the revenue collected from educational institutions by way of fees and other charges would be ₹ 1,500 crores, whereas, the total taxable value services would be only ₹ 20 crores, which is not even 1% of the revenue collected from educational activities. In the same manner, in the case of M/s. VS, the revenue collec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tream education for the M/s. SRMIST Deemed University and also for conduct of recognized courses in engineering system. In the said letter, they had also apprised the appellants that service tax need not be charged for the reason that the buildings are not intended for any commercial or industrial purposes. With regard to the demand for the period Apr.'13 to July, 2013, the learned consultant submitted that appellants admit this tax liability and the same has been paid along with interest before 236 days prior to the issuance of the show-cause notice. Therefore, the penalty is unwarranted and should be set aside. 4. The learned Authorised Representative Shri B. Balamurugan reiterated the findings in the impugned order. He laid thrust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zzzza) of the Finance Act, 1994 (as amended) is reproduced as under:- Taxable Service means any service provided or to be provided to any person, by any other person in relation to the execution of a Works Contract in respect of roads, airports, railways transport terminals, bridges, tunnels and dams. Explanation: for the purpose of this sub-clause, Works Contract means a contract wherein, (i) transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and (ii) such contract is for the purpose of carrying out, - (a) . (b) construction of a new building or a civil structure or a part thereof, or of a pipeline or a conduit, primarily for the purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for educational services, the same has to be considered for use of commerce or industry. 7.2 In the present case, it is established from the records that the buildings are predominantly used for educational activities. Merely because some incidental activities of renting of space for Scientific or Technical Services or Man-power Recruitment services occurs, it cannot be said that the buildings are not primarily used for educational services. We, are therefore, of the considered opinion that the demand for the period Oct, '08 to June, 2012, is unsustainable, and is therefore required to be set aside, which we hereby do. 8. The Ld. consultant has further submitted that for the period Apr.'13 to Jul.'13 the appellant does not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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