TaxTMI 
TaxTMI 
2025 (5) TMI 1817
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....al questions of law:- "i) Whether on the facts and in the circumstances of the case, the Ld. H.P. Tax Tribunal was justified in holding that the petitioner is liable for payment of tax on the supply of foodstuff and other items to the students within its premises even though it has been held that petitioner is predominately existing for education? (ii) Whether the Ld. Tribunal was justified in artificially bifurcating the turnover into exempted and non-exempted goods even though it has been categorically found that the petitioner is not a dealer in view of the law laid down by various courts? (iii) Whether on the facts and circumstances of the case, the Ld. Tribunal was justified in remanding the case back even though the entire proceedings were void ab-initio and the order should have been set aside in toto? (iv) Whether on the facts and circumstances of the case, the Ld. VAT Tribunal is justified in holding that petitioner would be liable to pay the tax on supply of goods to the students in the course of academic activities even though the same is not in the course of business? v.) Whether on the facts and in the circumstances of the c....
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....ty. Thus, University has established a mess, named as "Annapoorna", which is spread over three premises called as "Annapoorna-A"", "Annapoorna-B"" & "Annapoorna-C". The nature of facilities being provided by each of the wing of Annapoorna is depicted below:- Annapoorna Annapoorna-A (Food) (A) Annapoorna-B (Cafeteria) (B) Annapoorna-C (Tuck Shop) (C) Breakfast Lunch Dinner Patties, Burger, Chips, Kurkure, Biscuits, Coffee, Tea and Cold Drinks, Samosa, Chinese viz. Momos, Fry rice, Noodles, Sambhar Dosa etc. Patties, Burger, Chips, Kurkure, Biscuits, Coffee, Tea and Cold Drinks, Soaps, Shampoo, Sationery, Items etc. 11. A sheet enlisting items sold in the three wings of mess is enclosed as Annexure P-3. All these Wings are operated for fixed hours for the benefit of students as per details given below: S. No. Name of Wings Timings 1. Annapoorna-A (Food) Breakfast - 7 AM to 9 AM Lunch - 12.30 PM to 2 PM Dinner 7 PM to 9 PM 2. Annapoorna-B (Cafeteria) 9 AM to 5 PM 3. Annapoorna-C Tuck ShopFood) 3 PM to 11 PM 12. No access is allowed to the outsiders to these premises. Mess facilities are meant for the students of the Univer....
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....t supply the copy of the order creating demand of Rs. 38,17,348/- and informed that the same shall be given after expiry of 60 days i.e. after the expiry of limitation period prescribed for filing the appeal. The respondent authority outrightly refused to return signed blank papers. The respondent authority further advised the petitioner not to resort legal or appellate recourse to avoid harsh actions in future. We have heard learned counsel for the parties and have gone through the material placed on record. 18. A perusal of the Assessment Order would go to show that the same has been passed by the Assessing Authority without even caring or bothering to issue mandatory notice in the prescribed format VAT 29 as required under Rules 67 and 78 of the Act. 19. We have no hesitation to conclude that Dr. Sunil Kumar, the then AETC acted not only in a unprofessional but in a total illegal manner by fixing the liability to pay the tax on the day of the visit as is evident from the Assessment Order dated 06.03.2013, which reads as under:- "Vat Liability of Jaypee University of Information Technology Waknaghat U/s 21 of the HP. VAT Act-2005 The Jaypee Univer....
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....he petitioner was not liable to pay any tax on the said activities. After all, before imposing any tax, the authorities, at the first place, are required to see whether the Act is applicable or not and in such like cases there cannot be a deemed sale so as to attract the levy of tax. The burden to prove such intention rests upon the Department. It is otherwise more than settled that in the absence of profit making, the activity is not trade, commerce or business within the meaning of Section 2 (15) of the Income Tax Act, 1961. 22. When the main dominant activity of the University is to impart education, it cannot be termed as business activity. In coming to such conclusion, we are duly supported by the Judgment of the Hon'ble Supreme Court in Commissioner of Sales Tax vs. Sai Publication Fund 2002(4) SCC 57, wherein the Hon'ble Supreme Court categorically held that where the main activity is not business, then any incidental or ancillary transactions would normally amount business out if an independent intention to carry on the business in the incidental or ancillary transaction is established. It was further held that the burden to prove such intention rests on the department. ....