9911796707
TMI Blog2024 (8) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... as entered into an agreement with M/s. National Institute of Rural Development, Hyderabad on 11.05.2012 for the execution of project under "Swarnjayanti Gram Swarozgar Yojana" for placement of the rural BPL youth in Bundelkhand district of Madhya Pradesh. The total cost of the project was 381.64 lakhs out of which an amount of Rs. 286.23 lakhs was provided by the Central Government and balance of Rs. 95.41 lakhs was contributed by the appellant. 2. The department is of view that the training provided by the appellant falls under the category of commercial training and coaching center and for valuation of the service, the entire value including the contribution of the Central Government is to be included in the taxable value and service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of youths from below poverty line strata of society where 75% of the amount required for imparting training and improving skills was to be borne by Government of India through grant-in-aid and 25% was to be collected from contribution from non-governmental organizations and trained youth were assisted for getting employment on the basis of imparted skills. The contribution from non-governmental organization did not have any relationship between the amount contributed and the number of youth recruited into the contributing organization. He has also referred to a letter dated 23/01/2009 issued by Government of India, Ministry of Rural Development available at Page-136 of appeal paper book wherein at Para-5 it is stated that Central Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice tax was demanded is not sustainable in view of the said Final Order passed by this Tribunal as affirmed by Hon'ble Supreme Court. (ii) The learned A.R. for the Revenue has supported the impugned Order-in-Original. (iii) Having considered the submissions from both the sides, we find that the amount of around 21.12 crores (approximate) was received by the appellant from Government as grant-in-aid and by following decision of this Tribunal in the cose of Apitco Ltd. as affirmed by Hon'ble Supreme Court, we hold that service tax is not leviable on the amount received from Government as grant-in-aid. Further, we accept the contention of the learned counsel for the appellant that the contribution received from non-governmental age ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Governments to be "clients" of APITCO. The question now is whether there was "service provider-client" relationship between the assessee and the governments. Here, again, the nature of the amounts paid by the governments to the assessee is decisive. A client must not only pay the expenses of the service but also the consideration or reward for the service to the service provider. Admittedly, in the present case, there was no payment, by any government to the assessee, of any amount in excess of what is called "grant-in-aid". Thus any service provider-client relationship between the assessee and the governments is ruled out. It is true that the assessee had executed the governmental schemes mainly through their engineers (technocrats) but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase with the dismissal of the department's Civil Appeal filed against the Tribunal's Order. 7. For the reasons noted above, we hold that any amount of service tax is not leviable/on the grants- -aid received by the assessee from the governments, as project-implementing agency of the governments during the period of dispute. The assessee has also made out a good case on the ground of limitation against a major part of the demand of duty raised in the first show-cause notice. As early as in January 2004, the assessee had furnished all the relevant facts to the department through a letter addressed to the jurisdictional Assistant Commissioner Later on, in 2006, they stated all these facts once again in a letter addressed to the n Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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