2019 (5) TMI 1413

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....ohd. Altaf learned A.R. for the Revenue, we find that the appellant is a society registered under the Societies Registration Act for the purpose of undertaking various charitable activities. They provide charitable activities in relation to cremation of unclaimed dead bodies, organizing Eid Milan, running & maintenance of Masjid and Graveyard and other activities for Muslims. They are also running an orphanage and are providing free lodging, food, educational expenses, career outlets etc. to the inmates of the orphanage and also to other persons. The society is also educating destitute girls, women, orphans and provides ways for their rehabilitation and arranges for their marriages. 2. The appellant had let out some of the shops located i....

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....d the Mega Notification grants exemption to an entity and not to the services, the service tax confirmed against them is not warranted. Learned advocate appearing for the appellants have also assailed the impugned order on the point of limitation by submitting that the disputed issue is bona fide issue of interpretation and in the absence of any evidence to reflect upon mala fide on their part and the deliberately escape the payment of tax, longer period would not be available to the Revenue. 4. After hearing learned A.R. and after going through the impugned order, we find that there is no dispute that the appellant is a charitable institution and is also registered with the Income Tax under Section 12AA of the Income Tax Act, 1965 by way....

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....y way of charitable activities. It is only the services which are being provided by way of charitable activities which are exempted under the said Notification. Inasmuch as renting of immovable property cannot be considered to be a charitable activity, we are of the view that the Lower Authorities have rightly denied the benefit of the Notification in question. 5. However, we find that the demand stands raised for the period 2009-10 to 2013-14 by way of issuance of a show cause notice dated 29/02/2015, by way of invoking longer period of limitation. Admittedly the issue involved is a bona fide issue of interpretation inasmuch as the appellant being a charitable organization could have been under a bona fide belief that no tax liability wo....