TaxTMI 
TaxTMI 
2017 (4) TMI 35
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....ppeal relates to service tax liability of the appellant under various categories of services. The Revenue entertained a view that the appellants failed to discharge proper service tax under these various categories. Proceedings were initiated in respect of 4 categories of taxable services, two show cause notices were issued (on 23/04/2009 and 24/10/2011). The demands pertained to (a) Club or Association Service for the period 2005-2006 to 2010- 2011 (b) Business Auxiliary Service for the period 2004-2005 to 2010-2011 (c) Manpower Recruitment or Supply Agency Service for the period 2003-2004 to 2010-2011 and (d) Intellectual Property Right Service for the period 2004-2005 to 2010-2011. The show cause notices were adjudicated and vide the impugned order a total service tax demand of Rs. 25,52,78,952/- has confirmed. An amount equal to the tax was imposed as penalty under Section 78 of the Finance Act, 1994. Further, penalty of Rs. 25,000/- was imposed on the appellant under Section 77 of the Act. Out of this confirmed tax liability Rs. 24,22,08,297/- is relatable to service tax under Business Auxiliary Service. Rs. 69,47,830/- is attributable to Club or Association Service. The remai....
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....Authority wrongly arrived at taxable value invoking best judgment assessment, even though they have provided all the details of financial transactions for the relevant financial years; (f) demand for extended period is not sustainable. The second show cause notice dated 24/10/2011 was issued to demand service tax for the period 2008-2009 to 2010-2011. Extended period was invoked on the ground of suppression of facts. The first show cause notice dated 23/04/2009 which covered the period 10/09/2004 to 31/03/2008 was also issued invoking extended period of time. The demands for extended period are not sustainable. The penalties also are not sustainable. 3. The learned AR reiterated the findings in the impugned order. He submitted that the appellants did not provide the details called for, in time. The reasons for confirming demands were elaborated in the impugned order. 4. We have heard both the sides and perused the appeal records. We take up the tax liability of the appellant, service categorywise. The first issue is regarding liability of the appellant under the category of Club or Association Service. The Original Authority reproduced the legal provisions and held that the s....
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....ch observation is without any factual basis and it is basically fallacious. At the time of applying for the examination the student has no knowledge about the institute to which he may or may not get admission. The observation of the Original Authority that the appellant is acting as an agent for the institution as well as for the student is again factually incorrect. It is clear from the arrangement, that the appellant is conducting periodical MAT examination. Interested students pay the fee and write the examinations. The grades obtained by the student, as certified by the appellant help the students to get admission in the management institute. It helps the management institute also in selecting the right students for their course. The appellant is not acting on behalf of anybody while conducting the MAT examination. We find there is no provision of service on behalf of any client. As such, we hold no service tax can be levied on the examination fee collected by the appellant from the students for MAT examination. There is another small part of consideration which is sought to be taxed under BAS. Some of the management institute advertised their institutions or courses in the MA....
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....hat the reliance placed by them on the decision of the Tribunal in the case of Institute of Banking Personnel Selection vs. CST, Mumbai reported in 2007 (8) S.T.R. 579 (Tri. - Mumbai) is not proper. In the said case, it was held that full surplus fund is utilized to further the objects of the organization, the organization can be considered charitable if the object thereof is of charitable nature. The present case, the appellants are not engaged in any charitable activity while conducting examination for recruitment of personnel for various organizations. Admittedly, the appellants are collecting charges from the organizations and there is no public service involved in conducting examination for recruitment of personnel for various organizations which included commercial public sector undertakings. As such, we are of the opinion that the services rendered by the appellants are liable to be taxed under manpower recruitment or supply agency service. However, we note that such demand has to be confirmed only for the normal period covered by both the show cause notices. As already noted, the second show cause notice also invoked extended period which is legally unsustainable. Even for ....