9911796707
TMI Blog2024 (3) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... ENGALURU [ 2022 (8) TMI 707 - KARNATAKA HIGH COURT ] and have concluded that important education by university buy itself are through affiliated colleges by collecting an affiliation fee has to be considered as the service by way of education as a part of curriculum for obtaining qualification recognized by any law for the time being enforced and that the said service rendered by universities fall under the exemption contained under Clause I (of section 66D of the Act). The High Court of Karnataka has considered the provision of service tax vis- -vis important education in the new Service Tax Regime that is w.e.f. 01.07.2012. The impugned show cause notice to be issued covers the period 2014-2015 to 2017-2018 which squarely falls under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as through affiliated colleges. The appellant collects affiliation fees from various colleges/institutes. Revenue was of the opinion that the affiliation fees collected by the appellant is towards rendering of service, which is not outside the purview of section 66D of Chapter V of the Finance Act, 1994 [the Finance Act]. Accordingly, a show cause notice dated 27.03.2018 the demanding service tax of Rs. 4,41,87,527/- was issued to the appellant; the demand raised in was confirmed vide impugned order-in-original No. 10/COMMR/ST/JBP/2018 dated 27.06.2018 [the impugned order] along with interest and equal penalty. 2. Shri Manish Koushal, learned consultant appearing for the appellant and submits that the issue is no longer res-integra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt has observed as follows:- 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 educational Institutions not maintained by the University as affiliated colleges and in the process regulates the manner in which education has to be imparted in the said Colleges and also conducts examinations. In the process, for providing services for imparting education, it charges affiliation fee to the said colleges and the University has to be considered as an Educ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 provision of the single service which results in highest liability of service tax. Explanation. - For the purpose of sub-section (3), the expression bundled service means bundle of provision of various services wherein an element of provision of one service is combined with an element or elements of provision of any other service or services. 14. It is not in dispute that petitioner has let out some of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, which is exempt by virtue of sub-clause (ii) of Clause L of section 66D of the Finance Act, 1994. Moreover as per Entry No. 25/2012-ST dated 20.06.2012, as amended by Notification No. 6/2014-ST dated 11.07.2024 services provided by an educational institution to its students, faculty and staff as well as certain services received by educational institution are exempt. In the instant case, the appellant themselves are a university and the services, if any, provided by the appellants and received by the affiliated colleges which are none other than educational institutions. This should leave no scope for any doubt as to the exigibility of the services rendered by the appellant to the affiliated colleges in consideration to application f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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