2017 (10) TMI 1357

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....peal of the assessee and they were not granted total exemption. 2. The facts of the case are that the appellant is a society formed for the re-settlement of ex-servicemen. The appellant is required to comply with the Rajasthan State Government's regulations and rules. The appellant is a not for Profit society and is aimed at settling the ex-servicemen and is not involved in commercial activities and cannot be considered as 'commercial concern'. The impugned order dated 21.02.2017 passed by the ld. CESTAT in Custom Appeal No. 1173 of 2011, was received on behalf of the appellant on 17.03.2017 wherein service tax amounting to 64,80,971/- (Rs. 19,64,39/- for the period November, 2004 to September, 2007 and Rs. 45,16,632/- for the period Oct....

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....rder dated 17.04.2008 wherein the state has agreed to pay the service tax. vii) Whether accruing profits negate the nature of a charitable organization" 4. Counsel for the department in appeal no. 80/2017 framed the following substantial questions of law:- "i) Whether the Tribunal was justified in waiving the penalty levied on the assessee by invoking the provisions of Section 80 of the Finance Act, 1994 when admittedly the assessee was liable to pay service tax and there was no reasonable cause for it to not to pay the same. ii) Whether the Tribunal was justified in deleting the penalty only on the ground that it would not be possible for it to recover the same from its clients, ignoring that it failed to prov....

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....essarily imply requirement of profit motive. The expression is used in a taxing statute in the sense of occupation or profession which occupies time, attention and labour normally with the object of making of profit as against support or pleasure. In State of A.P. v. H. Abdul Bakshi & V Bros, MANU/SC/0259/1964 : AIR 1965 SC 531, it was observed :- 4. We are unable to agree with this view of the High Court. A person to be a dealer must be engaged in the business of buying or selling or supplying goods. The expression "business" though extensively used is a word of indefinite import, in taxing statutes it is used in the sense of an occupation, or profession which occupies the time, attention and labour of a person, normally with the ....