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TMI Blog2024 (3) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... or - failure to mention income with the service tax liability of Rs.2,28,08,414/- for the period from April, 2011 to December, 2012 - recovery alongwith interest and penalties. Demand of service tax for constructing educational institutes - HELD THAT:- For any organisation or institutions to qualify as having been established solely for educational, religious, charitable, help, sanitation or philanthropic purposes, for non-commercial status, it is required that same fulfils the condition of being run without any profit making. None of the educational Institutes were observed to have a non-commercial status. There are no reason to differ from these findings because there is no denial apparent on record that the educational institutions for w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofessional consultancy - HELD THAT:- Director remuneration refers to the compensation which a company gives to its Directors for the services rendered by him either in the form of fees, salary or by use of company s assets. But the mere fact of payment of remuneration is not sufficient to hold that there exists an employer employee relationship between the company and the Director in which situation only the remuneration paid could have been taxable. The Revenue has not produced any evidence that on the amount of remuneration TDS in terms of section 192 of Income Tax Act was ever deducted. Hence, there arises no Service Tax liability qua the amount of said remuneration. Order under challenge is liable to be set aside qua this demand - the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en for today, the appeal is proceeded to be decided on merits in absence of the appellant. 2. Arguments on behalf of the department heard. 3. It is submitted that there is no infirmity in the order under challenge, appeal is therefore prayed to be dismissed. 4. The record of the present appeal memo perused. It is observed that a Show Cause Notice No.698 dated 19.12.2014 was served upon the appellant, after observing that appellant has filed a substantially false declaration under Service Tax Voluntary Compliance Encouragement Scheme of 2013 declaring the tax dues of Rs.58,17,433/- for the period from October, 2011 to December, 2011. Department observed that the appellant is involved in the construction activities and has declared their tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal institutes has been confirmed by the authority below on the ground that for any organisation or institutions to qualify as having been established solely for educational, religious, charitable, help, sanitation or philanthropic purposes, for non-commercial status, it is required that same fulfils the condition of being run without any profit making. None of the educational Institutes were observed to have a non-commercial status. We have no reason to differ from these findings because there is no denial apparent on record that the educational institutions for whom appellant constructed the complex, were charging fees from the students. None of these educational Institutes are Government owned institutes. Also there is no evidence to pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirming the demand alleging the construction of individual house as a taxable service, service of construction of Residential Complex are liable to be set aside. 8. Coming to the value of service tax which has been alleged to have been concealed in the VCES by the appellant that is with respect to remuneration paid to the Directors and with respect to the amounts spent for legal and professional consultancy, we are of the opinion that Director remuneration refers to the compensation which a company gives to its Directors for the services rendered by him either in the form of fees, salary or by use of company s assets. But the mere fact of payment of remuneration is not sufficient to hold that there exists an employer employee relationship ..... X X X X Extracts X X X X X X X X Extracts X X X X
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