2025 (3) TMI 502

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....s, Educational/Charitable Institutions. The services pertain to the construction of buildings of charitable/educational institutions which are registered under Section 12A of the Income Tax Act, 1961. 3. On the basis of the information received from the Income Tax Department under third party data exchange policy, it appeared to the Department that the Appellant had received amounts on account of provisions of services but did not pay service tax to the Government. The period of dispute is Financial Year 2015-16, 2016-17. Show cause notice [SCN] dated 28.04.2021 was issued proposing as under:- i. Service Tax amounting to Rs.89,10,638/- (Rs. Eighty Nine Lakh Ten Thousand Six Hundred Thirty Eight only) including all cess should not be dema....

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....4 of the CGST Act, 2017 and imposed late fee of Rs.80,000/- under Section 70 of the Act read with Section 7C of the Rules. 5. On appeal before the first Appellate Authority, the learned Commissioner (Appeals) vide the impugned Order-in-Appeal, partly allowed the appeal before him by holding that the demand of service tax for the Financial Year 2015-16 is barred by limitation and accordingly the demand of service tax alongwith interest and proportionate penalty has been dropped by him. Penalties imposed under Section 77(1)(a), 77(1)(c)(i) & (ii) and late fee imposed under Section 70 of the Finance Act, 1994 have also been dropped and modified the demand of service tax for the Financial Year 2016-17 from Rs.55,31,993/- to Rs.33,67,300/-. The....

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....the 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.13 of Notification No.25/2012-ST. It was observed by the lower authorities that exemption is granted for the services to a trust etc. registered under Income Tax Act in the nature of construction, etc., which are predominantly used by general public. Further, charitable activity in para 2 (k) of the Notification has been defined as activities relating to:- (i) Public health; (ii) Advancement of religion or spi....