Ex-Servicemen Resettlement Society successfully contested ...

Security Services to Medical Colleges by Ex-Servicemen Society Exempt from Service Tax under Notification 14/2004-ST.

January 23, 2025

Case Laws     Service Tax     AT

Ex-Servicemen Resettlement Society successfully contested service tax liability on security services provided to medical colleges and affiliated hospitals. CESTAT ruled that security services to educational institutions qualified for exemption under Notification No.14/2004-ST. The Tribunal found that medical college hospitals serve public welfare and provide internship facilities, making them eligible for the exemption. Additionally, the Society's role in ex-servicemen welfare and job placement, where no consideration was retained and payments were direct reimbursements of salary and benefits, fell outside the service tax net. The demand for service tax was set aside as legally unsustainable, recognizing both the educational institution exemption and the non-commercial nature of resettlement activities.

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