2007 (6) TMI 43

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.... of law and facts are involved and hence, they are taken up together for disposal as per law. 2. The revenue has proceeded to compute the Service Tax on donations, government grants from among the receipts of rent and other fees collected by the appellants for renting out their auditorium adjacent to society's office. The appellants contention is that they are registered under the Travancore Co....

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....nder challenge. It is not the revenue's case that the appellant have resorted to clandestine collection of rents and charges for letting out the premises in the guise of donations. There are no statements from the persons who have made the admission that the donations were in lieu of the services received by them. Therefore, it is the submission of the appellant that donations received from public....

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....ants or the persons who have paid the amounts, the learned Counsel refers to the Order-in-Original and the findings recorded therein. The learned Counsel in response to the query refer the Order-in-Original where there is reference to the admissions made by the persons to prove that the amounts were paid by them in the form of donations only and had no relationship to the rentals or to the clandes....

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....s availed by the clients of the appellant. There is no nexus to the services availed. The donations are for carrying out the activity of the society registered under the Society's Act providing various services to the public. The charitable donations and public grants cannot be considered as part of the rental or services for which amounts were collected. Therefore, these two categories of collect....