TaxTMI 
TaxTMI 
2026 (2) TMI 911
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is a registered Co-operative Society under the Societies Registration Act, XXI of 1860 and being a charitable Organisation, registration is granted under Section 12A of the Income Tax Act, 1961. The appellant is running an educational institution. In order to comply with the obligations under the Service Tax, the appellant was registered under 'management consultancy services' and 'renting of immovable property services' on 10.08.2007. 2.1. On 03.05.2005, the appellant entered into an agreement with M/s. Tata Consultancy Services (TCS) for providing facilities in conducting initial learning programme at KIIT Campus i.e. Bhubaneswar and Noida. As per the agreement, the appellant was under obligation to provide: (i) infrastructure and facilities consisting of class room, faculty room, office, reprographic room, library cum reading hall, store room, computer lab, Server room, conference hall and auditorium. Further to provide printer, photocopier, generator and canteen facility. (ii) Accommodation: The appellant provided 52 numbers of 3 bed room bungalows; (iii) General requirement: transportation facility, medical facility. Laundry facility, cleaning fa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....red by the service provider to promote the business of the customer. He contends that as the appellant has not provided such services to promote the business of TCS in the instant case, the said services provided by the appellant to M/s. TCS cannot be brought under the ambit of Section 65(104c) of the Act. With reference to the fact that the Order-inOriginal confirmed the demand on such services on the ground that the appellant has provided 'infrastructure support services', he contended that although as per the explanation to section 65(104c) it is ascertainable that providing office space along with facilities, is covered under Infrastructure Supply Services, the appellant has not provided such services; that their main services were to provide class rooms with associated facilities with accommodation, Transportation, canteen, Security, Laundry, cleaning, etc., for training of the personnel of TCS. Therefore, it is argued that the said activities undertaken by the appellant are not falling under the 'business supply services'. In support of their contentions, the appellant herein relies on the following decisions: - (i) Essar Power Ltd. versus Commissioner of Central Exc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntire information has been ascertained from the balance sheet, profit & loss account and ledger of the appellant, it is contended by the appellant that the allegations of suppression with intent to evade payment of tax remains unestablished. Therefore, the Ld. Counsel for the appellant argues that the impugned order demanding Service tax, interest and penalty is barred by limitation. Reliance has been placed by the appellant on the following case-law: - (i) Teena Gupta Vs. Commissioner of Central Excise & Service Tax, Indore [(2025) 27 Centax 79 (Tri. Del)] (ii) Order dated 02.01.2023 of the Hon'ble High Court of Orissa in OTAPL No.10 of 2020 7. On the other hand, the Ld. Authorized Representative of the Revenue appearing before us has reiterated the findings in the impugned order. She submits that the appellant has provided 'infrastructure support' to TCS to promote their business; TCS is a commercial concern and hence, the infrastructure services rendered by the appellant are squarely covered by the definition of 'business support services' as defined under Section 65(104c) of the Finance Act, 1994. 8. Heard both sides and perused the records of the case. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....T would source 52 nos. of 3 bedroom bungalows near the training center and 6 people may be accommodated in each bungalow. Please refer the annexure for details, (12) .... (13) .... III. General Requirements: ............." 9.2. From the above, it is evident that the services rendered by the appellant squarely fall within the scope of 'infrastructural support services' as provided under Section 65(104c) of the Finance Act, 1994. Consequently, we hold that the services rendered by the appellant are appropriately classifiable under the category of 'business support services' and liable to service tax. 9.3. We also find that the appellant has contested this demand on the ground of limitation. It is the appellant's contention that the aspect of suppression of facts with intent to evade payment of Service Tax on their part has not been established in this case. The Show Cause Notice in this case has been issued on 20.05.2009, demanding Service Tax for the period from 01.05.2006 to 31.03.2008 by invoking the extended period of limitation. In this regard, we take note of the fact that the entire demand has been raised on the basis of infor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r the above category of service for demanding Service Tax, by invocation of the extended period of limitation. In fact, it is seen that only vide the Budget, 2010, the retrospective amendment was brought in. Therefore, we do not find any substance in the allegation of the Revenue in this regard that the appellant has intentionally not paid Service Tax on the rent received by them. In view of the above, we hold that the demand of Service Tax confirmed in this regard for the extended period of limitation is not sustainable. Accordingly, we uphold the demand of Service Tax under the category of 'renting of immovable property service' for the normal period alone, along with interest. As suppression of fact with intention to evade the tax has not been established in this case, we hold that no penalty is liable to be imposed on the appellant in respect of this demand confirmed for the normal period. 11. Regarding the demand of Rs.9,52,300/- as demanded under the category of 'management or business consultancy service' in terms of Section 65(65) of the Finance Act, 1994. We find that the appellant has received charges for training and consultancy works. The appellant is an established ....