TaxTMI 
TaxTMI 
2021 (9) TMI 1587
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..... While, that being so, the respondent revenue seems to have called upon the petitioner/University to provide certain details relating to the colleges affiliated to the University and the affiliation fees collected from them and the general inspection charges for the affiliated colleges for the period from 01.07.2012 to 31.03.2017. The petitioner had given reply. Thereafter, a show cause notice was given on 23.10.2018, by the respondent revenue to the petitioner stating that the petitioner/University under two heads is liable to pay service tax. The first head is renting of immovable properties, such as banks, post office etc., and the second head is other services of the University like affiliation fees, application fee for affiliation of new courses and rent collected from commercial establishments, etc. 4. Altogether, the revenue issued a show cause notice for the proposed tax due of service tax on those heads for a sum of Rs. 54,24,258/-. 5. The petitioner/University had given reply and in fact it seems to have paid the service tax on 04.01.2019, however, without prejudice their right to challenge the proposed action on the part of the revenue to levy the service tax on s....
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....ed services. 11. The relevant portion of the order cited supra reads thus: "11. After having gone into these arguments and the connected records, this Court feels that, the only question posed before this Court for decision is that, whether the services rendered by the petitioner university by granting affiliation and its allied activities and also by providing shelter in their campus to the service providers like Bank, Post Office, or catering etc., directly beneficial to the students, staff and faculty of the university, are exempted services within the meaning of Section 66-D of the Finance Act and also under the Mega Exemption Notification of the year 2012 as amended from time to time. 12. The history of introduction of service tax has been traced by the learned Counsel for the petitioner, which has been discussed in the earlier paragraphs. Up to 2012, the term "service" seems to have not been explained. First time, the term "service" has been explained under Clause 44 of Section 65-B, which has already been quoted hereinabove. 13. While giving such explanation for the term "service", the legislature also thought it fit to introduce two sections, n....
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....rted with effect from 11.07.2014, where, the services provided by the educational institution to its students, faculty and staff are mentioned. The word "students", that we can understand, with, the services provided, is nothing but imparting education, whereas, the services to be provided by the educational institution to its faculty and staff is concerned, certainly, it may not be a direct activity of imparting education. No staff or faculty is going to get any imparting of education either from the institution or from the university. Hence, it is not limited to the services of imparting education to students alone for the purpose of exemption, but, it expands beyond which, where, whatever the services to be provided by the educational institution to its faculty and staff shall also form part of the activity of education being provided by way of services by the educational institution. If we take up this language used, exactly, the services provided by the educational institutions including the university not only for students but also for faculty and staff would be covered under the exempted purview. 18. Not stopping with that, it goes further saying that, an educationa....
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....rsity to give affiliation can be an integral part of the educational services, being provided jointly, both by the University and the college. The college cannot independently function without the affiliation of the university. Therefore, for the purpose of providing the services of education, both the university as well as the college concerned, who get affiliated to the university, cannot be separated. 20. This is the purposive interpretation which is only possible, because, the services relating to admission and also the conduct of examination by such institution has been exempted. When we talk about the conducting of examination, it is the vehement contention of the revenue as submitted by the learned Standing Counsel by relying upon the advance ruling referred to above, stating that, exempted service on the conduct of examination is that, it relates to admission to institution and anything related to examination, based on which, degree, title or diploma is conferred to the students. 21. With respect, this Court is of the concerned view that, that kind of narrow or pedantic interpretation cannot be possible in the words "conduct of examination". The reason bei....
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....titution", cannot denote only the college affiliated to the university, but, it includes the university. As stated above, without the university, college cannot impart education on its own. 23. Moreover, the regime of service tax, ie., prior to the GST came into the field, had continuously made available the exemption provisions, initially by Section 66-D, from 2012, subsequently the mega notification, wherein, in the year 2014 clause 9 was inserted and subsequently by notification 9 of 2016, Clause 'l' of Section 66-D, which was omitted from the year 2016, had been reintroduced by introduction of clause (oa), where, under the heading "educational institution", the exact Clause 'l' of Section 66-D has been inserted. Therefore, throughout the regime between 2012 and 2017, the educational institution had been provided with the exemption as has been stated in various provisions of the Act as well as the mega notification, followed by the amended notification and during all these periods, these institutions including the universities can very well enjoy the exemption. Accordingly, the stand taken by the revenue for levying service tax for the services being pro....