TaxTMI 
TaxTMI 
2022 (11) TMI 47
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....ered with the Department. The appellant filed their returns regularly and also deposited the admitted tax. Pursuant to show cause notice dated 6.11.2019, service tax has been demanded as short paid/not paid, based on the Income Tax records like Form 26 AS, Income Tax Return, Profit & Loss Account, etc. for the financial year 2014-2015. The proposed demand of Rs.11,67,226/- was confirmed with equal amount of penalty under Section 78. Further, late fee of Rs.21,000/- has been imposed under Rule 7C read with Section 70. Further, penalty of Rs.10,000/- has been imposed under Section 77(2) for not showing correct gross receipt of services in ST-3 Returns. 3. Being aggrieved, the appellant preferred appeal before the Commissioner (Appeals), wh....
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.... 2,10,000 2,10,000 -- 25,956 Total (A) + (B) Grand Total 11,55,179 6. Ld. Counsel for the appellant urges that the receipts received from Balaji School (Venkatesh Shiksha Samiti), Service provided is construction service with material, which falls under "Works Contract Service". The gross amount received is Rs.51,15,536/-. 6.1. It is contended that service receiver is a trust, a charitable trust registered under Section 12 A/12 AA of the Income Tax Act, providing service of education and are not involved in any commercial activities. It is further contended that imparting of education is also in the nature of religious-charitable activities and hence, exempted vide Sl.No.1....
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....charitable or religious purposes, wherein exemption from income tax is available, subject to certain conditions. 6.5 Further, 'charitable purpose' is defined under Section 2 (15) of the Income Tax Act - 'Charitable purpose' includes relief of the poor, education, yoga, medical relief, preservation of environment, etc. and the advancement of any other object of general public utility. 6.6 Further, in the facts of the case, it is admitted that the service tax has been provided for civil construction of school building or hospital building to a charitable institutions or Trust registered under Section 12 AA of the Income Tax Act and the said activities are covered under the definition of 'Charitable Purpose' under the Income ....
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....lant have received sale proceeds of Rs.69,50,000/- whereas the cost of construction is Rs. 65 lakhs. Hence, Court below have held liable to pay service tax on differential value of Rs. 4,50,000/-. I find that no service tax is payable on the sale-purchase of property. Admittedly, in the facts of the present case, there is no contract for construction of a house property alongwith material. Rather, admittedly, appellant have sold fully constructed and furnished house property. Hence, I hold that no service tax is payable on the same and the demand of Rs. 55,620/- is set aside. 8. So far the ground, relating to demand of Rs. 64,259/- with respect various civil constructions/maintenance works done for Narmada Gelatine Ltd., the works ....
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....tity. Further, I hold that no service tax can be demanded on the differential value as per profit & loss account, of Rs. 75,647/-, as service tax is chargeable on accrual basis i.e. the liability occurs immediately on raising of the bill for the service provided or to be provided, whereas the appellant have maintained their account on cash basis/receipt basis. Accordingly, the demand of Rs. 64,259/- is set aside. 9. So far the demand on other receipts as per profit & loss account Rs. 47 lakhs is concerned, I find that the demand of tax has been made arbitrarily without relating the said receipt to any service provided, only on the allegation that the appellant did not provide any supporting documents with respect to the same and ha....