AI Drafter 
TaxTMI 
TaxTMI 
2026 (4) TMI 1744
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....pply agency services, but failed to discharge service tax on the same, relevant records were collected and statements of Financial Advisor and Chief Accounts Officer and other persons of the Management institute were recorded. On completion of the investigation, show-cause notice was issued to the appellant on 10.03.2010 demanding service tax of Rs.92,37,339/- for the period from 01.05.2006 to 30.09.2009 along with interest and penalty. Another show-cause notice was issued to them on 30.03.2011 demanding service tax of Rs.10,18,183/- for the period from 01.10.2009 to 30.09.2010 with interest and penalty. On adjudication, the demands were confirmed with interest and penalty. Aggrieved by the order confirming the demand for the period 01.10.2009 to 30.09.2010, they filed appeal before the learned Commissioner (Appeals), who in turn, rejected their appeal. Hence, the present appeals. 3.1. Learned advocate for the appellant has submitted that the appellant is an educational institution of higher learning and a seat of academic excellence in the field of management. They are registered as a society under the Mysore Societies Registration Act, 1960 w.e.f. 27.03.1972. The appellant als....
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....ervice as defined under Section 65(105) of the Finance Act, 1994. He has further submitted that for the earlier period commencing from 01.01.2000 to 2006, they were issued three periodical show-cause notices and these show-cause notices were ended with decision in their favour; hence, no demand for the earlier period was pending. The present appeals is the result of second time DGCEI investigation. 3.3. Assailing the impugned order, learned advocate for the appellant has submitted that the appellant are providing educational services which are duly recognised and approved by the GOI; hence, the services were excluded from the purview of the definition of 'commercial training or coaching centre' as definition under Section 65(27) of the Finance Act, 1994 during the entire period of dispute. It is their argument that when the principal activity i.e. educational service itself is excluded, then the incidental or ancillary service cannot be levied to service tax. Further, he has submitted that the Students Placement activity / facilities exclusively given to its own students and not offered to any person or third parties and being ancillary or incidental to the main services of prov....
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....e appellant has also entertained a bona fide belief because of the Board's Circular and other judicial decisions that service tax is not required to be paid on participation fees and recruitment fees; accordingly, not paid. In support, he has referred to the following decisions:- i. Continental Foundation Joint Venture Vs. CCE [2007(216) ELT 177 (SC)] ii. Jaiprakash Industries Ltd. Vs. CCE [2002(146) ELT 481 (SC)] iii. Nizam Sugar Factory Vs. CCE [2006(197) ELT 465 (SC)] iv. ECE Industries Ltd. Vs. CCE [2004(164) ELT 236 (SC)] On the same reasoning, he has submitted that penalty also cannot be imposed on the appellant. 4. Learned AR for the Revenue has reiterated the findings of the learned Commissioner. He has submitted that Board vide its circular F.No.354/28/2007-TRU dated 23.08.2007 made it very clear that educational institutions like IITs, and IIMs fall under the definition of 'manpower recruitment or supply agency' and service tax is liable to be paid on services provided in relation to campus recruitment service under Section 65(105)(k) of the Finance Act, 1994. Therefore, the learned Commissioner has rightly confirmed the service t....
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....anpower recruitment or supply agency' from 01.05.2006 means any person engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower temporarily or otherwise, to a client. Explaining the scope of the meaning of manpower recruitment or supply agency service applicable to educational institutions such as IITs, IIMs, the Board in its master Circular No.96/7/2007-ST dated 23.08.2007 issued clarification. The relevant portion of the said Circular reads as follows:- Circular No.96/7/2007-ST New Delhi, the 23rd August, 2007 F.No.354/28/2007-TRU Government of India Ministry of Finance Department of Revenue Tax Research Unit Sub: Clarification on technical issues relating to taxation of services under the Finance Act, 1994 - Regarding. Reference code Issue Clarification (1) (2) (3) 010.01/23.08.2007 Educational institutes such as IITs, IIMs charge a fee from prospective employers like corporate houses / MNCs, who come to the institutes for recruiting candidates through campus interviews. Whether services provided by such institutions in relation to recruitment of manpower are liable to service ta....