Charitable trust registration under income-tax law supported service tax refund for religious-use construction services.

A trust holding registration recorded under section 12A(a) was treated as sufficiently registered under section 12AA for the exemption notification, because sections 12A and 12AA had to be read together and the record showed continuing charitable status in income-tax proceedings. On that basis, construction services for a building owned by the trust and meant predominantly for religious use by the general public fell within the exemption. The refund claim with interest under the applicable rules was therefore maintainable, and rejection of the claim was unsustainable.

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Issues: Whether the appellant, a trust holding registration under section 12A(a), was entitled to refund of service tax on the ground that the construction services fell within the exemption for a building owned by an entity registered under section 12AA of the Income-tax Act, 1961 and meant predominantly for religious use by the general public.

Analysis: The certificate produced by the appellant showed registration granted in the register maintained for applications under section 12A(a), and the statutory scheme of sections 12A and 12AA had to be read together. The registration process under section 12AA explained the grant and continuation of charitable status, and the record also showed that the appellant continued to be treated as a charitable trust in income-tax proceedings. On this basis, the appellant was regarded as being registered under section 12AA for the purpose of the exemption notification.

Conclusion: The appellant was entitled to the refund with interest as per rules, and the rejection of the claim was unsustainable.

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