TaxTMI 
TaxTMI 
2026 (6) TMI 529
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....on service provided to the extent the demand has been dropped in so far as Periyar Maniammai University and Periyar Teaching Training Institute, are concerned, treating them as Government Educational Institutions. 2. The relevant facts are that the appellant is a registered service provider of Works Contract Service and are paying service tax for the service charges received by them after deducting the amount received from exempted services like Road works, pipe line work etc., but they had not discharged the applicable service tax for the construction services rendered to Educational Institutions. In response to an enquiry initiated, the appellant replied contending that construction to Educational Institutions are exempted as per Circu....
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....nded from them under Section 75 above amount ibid on the of service tax amount demanded supra; iv. Penalty should not be imposed on them under Sections 76, 77(2) and 78 of the Finance Act, 1994 for contravention of the Sections of the Finance Act, 1994. 3. After due process of law, the Adjudicating Authority vide the impugned order after holding that the construction for private Educational Institutions whether they are run by charitable trust or not, are taxable whereas construction for Government Educational Institutions are not taxable, went on to confirm the demand to the tune of Rs.19,76,70,368/- for the taxable services rendered under the category of works contract service during the disputed period and dropped the demand ....
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....filed by the department is against the deletion of demand of service tax with respect to the construction service rendered for Government Educational Institutions and the grounds urged in the Department's appeal is that the Periyar Maniammai University' and 'Periyar Teacher Training Institute' is only a private institution given the status of a 'Deemed to be University' in terms of Section 3 of the University Grants Commission Act and not established by the Central or State Government under Section 2 of the UGC Act. It is the contention of the Ld. Counsel that since the appeal with respect to confirmation of demand with respect to the construction services provided to private educational institutions, preferred by the Ap....
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....rks contract service and that therefore such services rendered by the appellant are liable to service tax, is tenable. 9. We find that this Tribunal, vide Final Order No.40703/2014 dated 13.06.2024, in the case of M/s. R.R. Thulasi Builders (I) P Ltd v The Commissioner of CGST & Central Excise, Salem had, in an appeal preferred by the Appellant against the demand confirmed under works contract service provided to private educational institutions for the disputed period vide the very same impugned order, allowed the appeal in the appellant's favour. The said Final Order has been rendered after noticing the Department's Circular No.80/10/2004-ST which had clarified that the constructions which are for the use of organizations or institutio....
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.... period for construction of educational institutions cannot sustain. The issue on merits is answered in favour of the appellant and against the Revenue. 18. The Ld. Counsel has argued on the ground of limitation. From the records, it is seen that the entire figures and details for raising the demand is taken from the accounts maintained by the appellant. Further the appellant has discharged appropriate service tax in regard to all other construction services. The appellant had not discharged service tax for constructions of educational institutions on a bonafide belief and also taking note of the clarifications issued by the Board as per circular dt. 17.09.2004. There is no positive act of suppression established by the department ....