Appeal dismissed, Service Tax upheld on services to ICFAI. Penalties dropped.

The Tribunal dismissed the appeal, upholding the demand for Service Tax on services provided to ICFAI, ruling that ICFAI did not qualify as an Educational Institution exempt from Service Tax based on precedents and interpretations presented during the hearing. The penalties were dropped, and the Department did not appeal the penalty decision.

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Issues involved: Interpretation of whether ICFAI is an Educational Institution exempt from Service Tax.

The Appellate Tribunal CESTAT Hyderabad heard an appeal regarding the appellant providing renting of immovable property services to ICFAI and AMPL. The appellant paid the Service Tax for services to AMPL but contested the tax liability for services to ICFAI, claiming ICFAI's status as an Educational Institution exempt from Service Tax. The Commissioner (Appeals) upheld the demand for ICFAI services, noting the interpretational issue of ICFAI's classification. The penalties were dropped. The appellant appealed to the Tribunal, with the Department not filing any appeal against the penalty decision.

The appellant's representative argued that services to ICFAI, an educational provider, were correctly interpreted as exempt from Service Tax. The Authorized Representative for the respondent countered, citing a case where ICFAI was deemed a commercial training center, not an Educational Institution eligible for exemption. The Tribunal referenced a previous case where ICFAI was found not to be an Educational Institution granting recognized degrees, supporting the denial of the appellant's claim.

In conclusion, the Tribunal dismissed the appeal after considering the arguments and precedents presented during the hearing.

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