https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=754503 https://www.taxtmi.com/caselaws?id=754503 Non-payment of service tax - Classification of service - Works Contract Service or not - services to educational institutions during the period from March 2008 to March 2011 - building s constructed for the said educational institutions can be regarded as intended for commerce or industry or not - demand alongwith interest and penalties - extended period of limitation. Classification of service - HELD THAT:- Classification of services is a matter relating to chargeability and the burden of proof is squarely upon the Revenue. If the Department intends to classify a service under a particular category, the Department must adduce proper evidence and discharge the burden of proof. The judgments of the Hon ble Supreme Court in UNION OF INDIA VERSUS GARWARE NYLONS LTD. [ 1996 (9) TMI 123 - SUPREME COURT] , HPL CHEMICALS LTD. VERSUS CCE, CHANDIGARH [ 2006 (4) TMI 1 - SUPREME COURT] , PUMA AYURVEDIC HERBAL (P) LTD. VERSUS COMMISSIONER OF C. EX., NAGPUR [ 2006 (3) TMI 141 - SUPREME COURT] , although rendered in the case of classification under the Central Excise Act is also relevant for classification of a service under the FA 1994. Interpretation of phrase primarily for the purposes of commerce or industry - HELD THAT:- The statutory definition of a service given for a particular activity (commercial training or coaching) cannot be taken to understand the term commerce or industry used for another service (WCS) when no ambiguity is involved. As a general principle of interpretation, where the words of a statutory provision are plain, and unambiguous, the intention of the Legislature is to be gathered from the language of the provision itself. The term commerce or industry are commonly understood terms and do not require the aid of another definition from the statute to gather its intention. Commercial activities, relate to activities having profit as the primary aim - The department has not discharged the initial burden in establishing chargeability of the service falling under WCS. Merely because the institutions are collecting a fee will not make the institution primarily for the purposes of commerce or industry. The demand must hence fail. Extended period of limitation - HELD THAT:- It is settled law that mere failure to register and pay duty does not amount to willful suppression. The Act contemplates a positive action which betrays a negative intention of willful default. There must be some positive act from the side of the assessee to bring a charge of fraud, willful suppression etc with intention to evade payment of duty. No such allegation is found either in the SCN or in the findings of the Original Authority - Normal audit objection based on legal reasoning does not lead to a charge of suppression. Something more is required. In any case the demand having failed on merits the issue of any demand, interest and penalty does not arise. The impugned order is set aside - appeal allowed. Case-Laws Service Tax Tue, 25 Jun 2024 00:00:00 +0530