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TMI Blog2025 (1) TMI 1039X X X X Extracts X X X X X X X X Extracts X X X X ..... ty Services are rendered to these colleges. The appellant is periodically engaged in the welfare activities of the ex-servicemen and is providing job opportunities coordinating with RSB for such placements. For such activities, they do not get any considerations. The amounts received on actual of salary, PF etc., are directly credited to the accounts of such employees. Conclusion - Services provided to educational institutions, including hospitals, are exempt from service tax. Reimbursements are not subject to service tax. Non-commercial activities of a society aimed at resettlement are not taxable. The confirmed demand of Service Tax is not legally sustainable - Appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice Tax for the activities carried out by them. 3. He further submits that the Society is a non-commercial organization, with an objective among others - 'to protect the interest of all ex-servicemen and their dependents', particularly, 'to develop resettlement for ex-servicemen and their dependents and/or dependents of ex-servicemen who were killed/disabled in action or died otherwise'. To fortify this submission, he submits copy of the Memorandum of Association of the Society and draws our attention to sub-clauses (b) and (e) of Clause 3. As per sub-clause (g) of Clause 3, the objective of the Society 'to collect donations and subscriptions for the purpose of the Society' and that income and properties of the Society whatsoever derived or obtained shall be applied solely towards the promotion of the objects of the Society and no portion thereof shall be paid to or divided amongst any of its members by way of profits. Thus, he submits that it is a non-profit organization and is fundamentally engaged in providing re-settlement opportunities to the ex-servicemen. In this regard, he cites the following submissions : (i) An AGREEMENT DATED 01.01. 2005 was executed between Rajya S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rance & Admin Chg of EPF ERS/NBMCH/FEB/03/ 2013 dt.04.02.2013 North Bengal Medical College & Hospital - Do - ERS/MCH/DEC/2012 dt.01.01.2013 Medical College & Hospital Amount inclusive of EPF, Employer's Deposit Link Insurance, Admin Chg of EPF & ESI ERS/SDMCH/APR/2015 dt.05.05.2015 College of Medicine & Sagar Dutta Hosp. -DO - ERS/BCROY/AUG/05/ 2015 dt.02.09.2015 Dr.BC Roy Post Graduate Institute of Pediatric Science - Do - ERS/RG KAR/MAY/02/ 2015 dt. 29.05.2015 RG Kar Medical College & Hospital - Do - (viii) He also produces copies of the letter No. 13/2003/293/RSB dated 16.03.2004 issued to different Govt. run Educational Institutions by Rajya Sainik Board of Govt. of West Bengal as to initial modalities of engagement of ex-servicemen as Security Officers and Shift Supervisors through Ex-servicemen Resettlement Society (Para 7 of the letter), letter No. 13/2003/Gen./322/RSB dated 12.05.2005 issued to Deptt. Of Health & Family Welfare of Govt. of West Bengal to allot funds to the receiver of services. This is part of their evidence that it is the Govt of West Bengal which facilitates the deployment of the members of the appellants-assessees as security / c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m part of the value for charging service tax. In the present case, once the reimbursement amount is removed from the consideration received by the appellants-assessees, the Service Tax would be nil. 3.5 Without prejudice the above submission, he also submits that when the services have been provided to reputed Medical Colleges, which also have attached Hospitals. On the ground that the appellant has not provided bifurcation of amount received on account of services provided to the College and the Hospital, the demands were confirmed. He submits that in respect of all the Medical colleges, as per the Govt regulations they are required to run a hospital also. The client is basically Medical College who also runs the hospital. Therefore, the consultant submits that the lower authorities are in error in denying the Service Tax exemption benefit. 3.6 He draws our attention to the fact that for the period 2013-14, the Adjudicating authority has dropped the demand to the extent of Rs.19,86,194/- and for the period 2014-15, he has dropped the demand to the extent of Rs.19,66,177/-. Against these dropping of the demands, the Revenue has not preferred any further appeal before the Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies on the grounds of appeal taken by the Revenue in their appeal. He submits that the service has been provided to the Educational Institutions, which are also running hospitals and the appellant has not given bifurcation of the consideration received on account of services provided in respect of educational wing and hospital wing separately. He further submits that there is no exemption available if the security services are provided for hospitals. Therefore, he submits that the appeals filed by the appellant should be dismissed and the appeal filed by the Revenue should be allowed. 5. Heard both the sides and perused the Appeal papers and other documentary evidences placed before us. 6. We have gone through the details of Educational Institutes to whom the services were provided. The list of the Medical Colleges & Other Institutes, to whom the security service is being rendered by the appellant, are as under : (1) IPGMER & SSKM (2) Bangur Institute of Neorology (3) Burdwan Medical College & Hospital (4) Calcutta National Medical College & Hospital (5) Chittaranjan Seva Sadan (6) BC Roy Post Graduate Institute & Pediatric Science (7) Nil Ratan Sarkar Medical Colle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n RSB/ ZSB by the Government will be finally executed by Ex-Servicemen Resettlement Society on behalf of the RSB/ZSB. The ExServicemen Resettlement Society is supposed to function under the advice of the RSB only, as far as, Hospital services are concerned, all payments to the members of Ex-Servicemen Resettlement Society is supposed to made at an early date after the same is reimbursed/ recovered from the employers and reported to RSB/ZSB in each month. All agreement relating to providing man between RSB/ZSB with other Government or non Government Agencies will also be binding on Ex-Servicemen Resettlement Society. The honorarium/ wages of Ex-Servicemen Resettlement. Society staff is to be decided in the Governing Body of Servicemen Resettlement Society during AGM. From the above, it is apparent that the wages and other allowances were collected by the noticee. M/s Ex-Servicemen Resettlement Society, for payment to the members who are exservicemen and their dependents. In the case of Security Guards Board for Greater Bom. & Thane Dist. Vs. C.C.E., Thane-II [2017 (51) STR 51 (Tri-Mumbai), the Hon'ble CESTAT, West Zonal Bench, Mumbai, has observed that the Security Guards ..... X X X X Extracts X X X X X X X X Extracts X X X X
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