2024 (10) TMI 982

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....ribe and Minority communities sponsored by Bruhat Bangalore Mahanagar Palike (BBMP) can be considered as sovereign function for exemption from payment of service tax, or it can be taxable under the category of 'Commercial Training or Coaching services'. 2. The brief facts are the appellant had entered into an agreement with BBMP for providing Computer training to the candidates belonging to backward classes during the years 01.04.2005 to 31.03.2010 for which they were paid an amount of Rs. 3,500/- per candidate. As per the terms of agreement the cost of infrastructure like computer, hardware, software, electrical fittings, furniture etc., had to be shared between the two parties at rate of 50% each. 3. The Respondent demanded ....

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....alone with intention to evade payment of service tax. The activity carried out by the appellant was not 'commercial' in nature but to provide vocational training to the students of the weaker sections of the society. Further, there is no admissible evidence in support of the allegation that the appellant had suppress relevant facts with intent to evade payment of service tax. 6. The Learned Counsel relied on the decision of Hon'ble Supreme Court in the matter of Anand Nishikawa Co. Ltd Vs. Commissioner of Central Excise, Meerut [2005 (188) ELT 149 (SC)], wherein it is held that mere failure to declare the facts does not amount to willful suppression. The Learned Counsel relied on the judgment of Hon'ble High court of Kerala in the matter....

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....rmal period of demand. 8. Learned Authorised Representative (AR) for the Revenue vehemently opposed the contention raised by the appellant and submits that the issue is squarely covered by the judgment of the Hon'ble High court of Karnataka and appellant, who had failed to pay service tax in accordance with law are liable to pay the same. Moreover, as directed by the Hon'ble High court of Karnataka, the recipient of the services is directed to pay the dues and, in such event, the appellant will be unjustly enriched by collecting the entire amount from the service recipient and not paying the same to the Revenue. 9. Heard both sides and perused the records. The issues before us are whether the service provided by the appellant is l....