9911796707
TMI Blog2022 (8) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... ty is taxable for service tax. It is their case that affiliation fee collected by the petitioner University cannot be considered as a consideration for providing educational services - the act of University in granting affiliation to a private college has to be considered as a service in furtherance of providing education is erroneous. Whether the petitioner is liable to pay the service tax on the rent received by it from the buildings let out by it? - HELD THAT:- Normally, a person is bound to reply to the show cause notice issued by the Authority and it is not appropriate for him to approach the Court without doing the same. However, in the instant case, the dispute does not pertain to quantification of service tax, but whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 20.04.2018 bearing No. SCN Sl.No.22/2018-19 vide Annexure- C and also Statement of Demand dated 28.02.2019 bearing No. C.No.IV/09/01/2019-SD6 877/19 vide Annexure- U to the writ petition. However, during the course of arguments, petitioner confines its prayer to the show cause notice at Annexure- C as well as Annexure- U to the writ petition and does not insist upon other prayers. 4. The case of the petitioner is that, it is imparting education and the entire affiliation fee received by it is towards the same and as per the provisions of Section 66D of the Act and notification No.25/2012-ST dated 20.06.2012 as amended from time to time, consideration received by providing service by way of education as a part of curriculum for ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 66D of the Act. Clause (l) of Section 66D reads as under:- (l) Services by way of- (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course; 8. The petitioner University is established under the Karnataka State Universities Act, 2000 and Universities are established by the State for furthering the advancement of learning and pursuing of higher education and research. For this purpose, apart from they themselves imparting education through their constituent colleges, it also admits e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in real estate business and certain buildings are let out by it to carry on certain activities like canteen, Bank facility and the like which are essential in running a University for imparting education. 13. Clause (3) of Section 66(F) of the Act, reads as under:- (3) Subject to the provisions of sub-section (2) the taxability of a bundled services shall be determined in the following manner, namely:- a) if various elements of such service are naturally bundled in the ordinary course of business, it shall be treated as provision of the single service which give such bundle its essential character; b) if various elements of such service are not naturally bundled in the ordinary course of business, it shall be treated as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x for the activity of petitioner University in providing education. Further, it is the clear stand of the respondents Authorities before this Court that the activity of the petitioner Institution in granting affiliation to Colleges and consideration received towards it is taxable under the Service Tax. 17. Under the circumstances, it is not appropriate to relegate the petitioner before the adjudicating Authority. 18. For the aforementioned reasons, the following:- ORDER i. The show cause notice dated 20.04.2018 bearing No. SCN Sl.No.22/2018-19 vide Annexure- C and statement of demand dated 28.02.2019 bearing No. C.No. IV/09/01/2019- SD-6 877/19 vide Annexure- U to the writ petition are hereby set aside and consequent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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