TaxTMI 
TaxTMI 
2025 (6) TMI 1816
X X X X Extracts X X X X
X X X X Extracts X X X X
..../BPL-II/2018 dated 19.12.2018 passed by the Principal Commissioner, Central Tax Customs & Central Excise, Bhopal, wherein the demand of service tax of Rs.6,07,01,622/- was confirmed alongwith interest and penalty under section 75 & 78 of the Finance Act, 1994. 2. The brief facts of the case are that the Appellant is engaged in imparting higher education to students. They were not registered with service tax department for payment of service tax. Intelligence was gathered by the Revenue department that the appellant was granting affiliation to various colleges for which they were collecting charges, viz. affiliation fees, inspection fees, no objection fees from such affiliated colleges. The Department opined that the amount so collected b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ounsel further submitted that the issue was no more res integra in the light of the decision of the Hon'ble Supreme Court in the case of Principal Additional Director General & Ors. vs. M/s. Rajiv Gandhi University of Health Sciences SLP (Civil) Diary No.59470 of 2024 dated 24.01.2025. 6. Learned Authorised Representative reiterated the findings of the impugned order. However, in all fairness, learned Authorised Representative conceded that the issue relating to affiliation fee is covered by the decisions in Principal Additional Director General & Ors. vs. M/s. Rajiv Gandhi University of Health Sciences (supra). 7. We have heard the learned counsel for the appellant and the learned Authorised representative for the Department. We note....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ellaneous stage observing as under: "2. Having heard the learned Additional Solicitor General appearing for the petitioners and having gone through the materials on record, we see no reason to interfere with the impugned order passed by the High Court. 3. The Special Leave Petition is, accordingly, dismissed." 9. The relevant paras of the said decision are reproduced below hereinafter: "VIII. AS TO TAXABILITY OF INCOME FROM AFFILIATION AND ALLIED FUNCTIONS: (a) The University being a statutory body, accords affiliation to the health science colleges on the recommendation of the State Government. This is done under Section 45 of the RGUHS Act. Affiliation results into certain benefits/privileges; at the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ity' has not been defined in the Act. In common parlance, it would mean an act, a deed, a work, an operation or the like. An 'activity carried on' means an act executed, a deed done, a work accomplished or an operation carried out. This expression has a wider connotation and includes both active and passive act. The second component of the definition is consideration, which again is not well defined. However, as per Explanation (a) to section 67 of the Act, 'consideration' includes any amount that is payable for the taxable services provided or to be provided. This Explanation does not make the idea clear. (c) Let us see the definition of consideration u/s 2(d) of the Indian Contract Act, 1872,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng the activity does so at the desire of another in exchange for a consideration. There should be something like quid pro quo. An activity done without such a relationship i.e., without the express or implied contractual reciprocity of a consideration would not be an 'activity for consideration' even though such an activity may lead to accrual of gains to the person carrying out the activity. Thus, an award received in consideration for contribution over a life time like Nobel Prize, Jnana Peeta, etc., will not be a consideration. There can be many activities without consideration. An artist performing on a street does an activity without consideration even though passersby may drop a coin in his bowl. They are, however, under no ob....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d to the University in accordance with the Statutes. It also includes the institutions that are deemed to be affiliated to the University. Deeming part is not relevant for our discussion. Section 4 of this Act which enlists the powers & functions of the University, at clause (vii) reads 'to affiliate or recognise colleges and institutions and to withdraw such affiliation or recognition'. Section 45 provides for affiliation and the procedure therefor. For grant of admission, affiliation is a pre-condition under subsection (10). Section 48 provides for withdrawal of affiliation on fault grounds. For the grant or renewal of affiliation, the University levies fees, late fees, fines & penalties in terms of extant statutes of the Universi....