TaxTMI 
TaxTMI 
2026 (7) TMI 1051
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....sions of the respondent allowed the appeal filed by the respondent by observing that the respondent was eligible for the benefit of Notification No. 25/2012-ST dated 20.06.2012 (Sl. No. 39). Aggrieved by this, the Revenue is in appeal before us. 3. The learned Authorised Representative on behalf of the Revenue reiterating the grounds of appeal submits that promotion of education is a function entrusted to the Municipality under Article 243W of the Constitution is wrong since it does not directly assign powers to the municipalities but provides subject to the provisions of the constitutions. 4. The learned Chartered Accountant (CA) for the respondent countering the above arguments submitted that the respondent is discharging the functions entrusted to them by Act passed by the State Legislative Assembly and also submits that activity of recognition of educational institutions is exempted as per Section 66D (I) (ii) of the negative list read with mega exemption Notification No. 25/2012-ST dated 20.06.2012. Also, relies on the decision of the Hon'ble High Court of Karnataka in the case of Principal Additional Director General, Bengaluru Vs. Rajeev Gandhi University of Health Sci....
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....ct of courses of each discipline so that the students are imparted quality education for the award of degrees in the concerned courses............. xxx 49. In view of the settled legal position as explained above, I find that the exemption in Sl. No. 39 of the notification is plain and unambiguous and the SCN attempts to restrict the scope of the exemption by importing additional conditions with reference to the Kerala Municipalities Act into the notification whereas the notifications plainly states that services by a governmental authority by way of any activity in relation to any function entrusted to a municipality under Article 243W of the Constitution is exempt. As discussed above the promotion of education is an activity entrusted to a municipality as per Article 243W of the Constitution. The SCN seeks to qualify the exemption by introducing a condition that the function should be entrusted to the municipality by law enacted by the respective State Legislatures. This is nothing, but legislation by interpretation and it is not permissible in view of the legal position as explained above. Further, the scope of exemption under the notification, issued under a C....
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....al, Bengaluru Vs. Rajeev Gandhi University of Health Sciences (supra) observed as follows: "V. ..... xxx (B) A THUMBNAIL DESCRIPTION OF RELEVANT PROVISIONS OF THE FINANCE ACT, 1994: xxx (b) Section 66D creates "Negative list of services" which are outside the levy of service tax. Clause (1) of this Section as it existed upto 14.05.2016 enlisted certain types/levels of education namely: education upto higher secondary level; education which was a part of curriculum for obtaining a qualification recognized by any law; education as a part of an approved vocational education course. The Negative List entry in this clause came to be omitted by 2016 Amendment w.e.f. 14.05.2016. With this omission, specified educational services became liable to service tax. However, for the period between 14.05.2016 & 31.03.2017, the educational institutions were granted exemption vide Entry 9 of Notification No. 25/2012-ST and Exemption Notification No.9/2016-ST dated 01.03.2016 issued by the Central Government under Section 93 of the Act. There is Exemption Notification No.25/2012-ST. Section 68 is the charging section; it says that Service Tax shall be levi....
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....ed. 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) ................The purpose of consideration is to put some legal limits on enforceability of agreements, in the sense that only those promises which are supported by consideration are enforceable, and others not binding, despite intent of the promisor to be bound by. Consideration is an index of the seriousness of the parties to be bound by the bargain. It also serves evidentiary and formal function. Lord Denning in Combe v. Combe [1951] 1 ALL. ER.767 said: 'The doctrine of consideration is too firmly fixed to be thrown by a side wind... it still remains a cardinal necessity of the formation of a contract. Consideration in the sense of law means something valuable vide Chidambara Iyer v. Renga Iyer. AIR 1966 SC 193. In simple terms, consideration means everything received or recoverable in return for a provision of service which may be monetary or non-monetary. To be taxable, an activity should be carried out by a person for consideration. Thus, ....
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....(a) of RGUHS Act, defines 'Affiliated College' to mean a college or institution... affiliated 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 University. However, the act of granting, renewing or withdrawing is done in discharge of public duties enjoined by law. Therefore, such acts do not fit into the expression 'activities carried on for consideration', more particularly, when they do not have commercial elements, as rightly contended by Mr. Raghuraman. Added, the idea of 'activiti....