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TMI Blog2022 (1) TMI 1127X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be exempt from payment of service tax for the period from 01.07.2012 to 20.10.2015. Whether the appellant is liable to pay service tax on the freight amount paid by it on a reverse charge mechanism? - HELD THAT:- Goods transport agency service has been defined in section 65(26) of the Finance Act to mean any person who provides service in relation to transport of goods by road and issues consignment notes, by whatever name called. In the present case, consignment notes have not been issued and so the activities cannot be said to be covered under goods transport agency services - In this connection it would be useful to refer to the decision of the Tribunal in BHORAMDEO SAHAKARI SHAKHAR UTPADAM KARKHANA VERSUS COMMISSIONER OF CU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ps to propagate yoga training and vedic knowledge for which it received donations from its members. 4. An enquiry was, however, conducted in connection with non-payment of service tax on such membership donations, on freight charges paid by the appellant, and on the amount by the appellant for hiring motor vehicles. Ultimately, a show cause notice dated 06.04.2014 was issued to the appellant for the period January 2009 to March 2013 proposing demand of service tax with interest and penalty under the category of club or association service , goods and transport agency service and rent-a-cab operator service . This show cause notice is pending adjudication. 5. Two more show cause notices dated 31.03.2015 and 05.01.2016 were is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) Explanation 3 to section 65B(44) of the Finance Act treats an unincorporated association or body of persons and its members as distinct persons. Further, the appellant is obliged to provide stated facilities to members in lieu of donations and thus, is liable to pay service tax on the same; (iv) Only specific charitable activities are exempted under Notification dated 20.06.2012 and the activities of the appellant are not covered under the scope of the said exemption; (v) The appellant, by virtue of payment of freight charges, is a person liable to pay service tax and the freight amount is liable to Service Tax under transport of goods by road service ; and (vi) The categories of persons liable to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The doctrine of principle of mutuality is also applicable in the present case; (vi) The appellant is not liable to pay service tax on the freight amount paid by it; and (vii) Interest is not recoverable and penalty is not imposable. 7. Shri Anup K. Thapliyal, learned authorized representative appearing for the Department has, however, the justified the impugned order and in this connection placed various paragraphs of the order. 8. The submissions advanced by the learned counsel for the appellant and the learned authorized representative appearing for the Department have been considered. 9. The issue that arises for consideration is regarding the demand of service tax on the donations received by the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 12AA of Income-tax Act, 1961 (43 of 1961) in the said period, but for the said practice, shall not be required to be paid. 12. The appellant is registered under section 12AA of the Income Tax Act and the education and training in yoga provided by the appellant is towards the activity of advancement of yoga. Thus, as both the conditions are satisfied by the appellant, the membership donations collected by the appellant would be exempt from payment of service tax for the period from 01.07.2012 to 20.10.2015. 13. The appellant is also entitled to exemption from payment of service tax under the Notification dated 20.06.2012 w.e.f. 21.10.2015. The relevant extract of the said Notification is reproduced below: No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or skill development relating to,- (a) abandoned, orphaned or homeless children; (b) physically or mentally abused and traumatized persons; (c) prisoners; or (d) persons over the age of 65 years residing in a rural area; (iv) preservation of environment including watershed, forests and wildlife; or (v) advancement of any other object of general public utility up to a value of, -(a) eighteen lakh and seventy five thousand rupees for the year 2012-13 subject to the condition that total value of such activities had not exceeded twenty five lakhs rupees during 2011-12; (b) twenty five lakh rupees in any other financial year subject to the condition that total value of such activities had not exceeded twenty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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