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TMI Blog2025 (3) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... ritable or religious purposes, wherein exemption from income tax is available, subject to certain conditions - Further, 'charitable purpose' is defined under Section 2 (15) of the Income Tax Act - 'Charitable purpose' includes relief of the poor, education, yoga, medical relief, preservation of environment, etc. and the advancement of any other object of general public utility. Further, in the facts of the case, it is admitted that the service tax has been provided for civil construction of school building or hospital building to a charitable institutions or Trust registered under Section 12 AA of the Income Tax Act and the said activities are covered under the definition of 'Charitable Purpose' under the Income Tax Act - The said activiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice Tax amounting to Rs.89,10,638/- (Rs. Eighty Nine Lakh Ten Thousand Six Hundred Thirty Eight only) including all cess should not be demanded and recovered from them under Section 73(1) of the Finance Act, 1994 read with Section 174 of the CGST Act, 2017. ii. Interest on the above demanded amount should not be charged and recovered under Section 75 of the Finance Act, 1994 read with Section 174 of the CGST Act, 2017. iii. Penalty should not be imposed upon them under Section 78 of the Finance Act, 1994 read with Section 174 of the CGST Act, 2017. iv. Penalty should not be imposed upon them under Section 77(1)(a) of the Finance Act, 1994 read with Section 174 of the CGST Act, 2017 as the noticee failed to take registration in servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1994 have also been dropped and modified the demand of service tax for the Financial Year 2016-17 from Rs.55,31,993/- to Rs.33,67,300/-. The Appellant Assessee still being aggrieved with the demand for the Financial Year 2016-17 has filed the present appeal before the Tribunal. 6. Heard both the sides and perused the appeal records. 7. The dispute in the present appeal as to whether the service tax has been rightly demanded as short paid or not paid. Pursuant to the SCN dated 28.04.2021, service tax has been demanded as short paid/not paid, based on the Income Tax records like Form 26AS, Income Tax Returns, Profit & Loss Account etc., for the Financial Year 2016-17. The proposed demand of Rs.33,67,300/- has been confirmed with equal amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty in para 2 (k) of the Notification has been defined as activities relating to:- (i) Public health; (ii) Advancement of religion or spirituality; (iii) Advancement of educational programmes or skill development; (iv) Advancement of any other object of general public utility. 8.2 Hence, it was held that benefit of exemption is not available for the activity of the construction of school or hospital buildings. 8.3 Ld. Counsel urges that exemption has been provided for the construction done for charitable institutions registered under Section 12 AA of the Income Tax Act. 8.4 Section 12 AA read with section 12 A of the Income Tax Act provides for process of registration of a trust or institution, where income derived from the proper ..... X X X X Extracts X X X X X X X X Extracts X X X X
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