TaxTMI 
TaxTMI 
2026 (10) TMI 117
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....required to pay the Service Tax for the Grants received from the Govt., since the same is not any consideration for providing any service. They also submitted that the Service Tax in question has been paid by them for Rs.7,60,232/- but the same was paid under some other headings and not under the RCM basis. Their total Service Tax payment exceeded the demand made. After due process, the lower authorities have confirmed the demand. Hence, the appeal before the Tribunal. 2. The Ld. Chartered Accountant reiterates the detailed Grounds taken by the appellant in their Appeal memorandum. He further makes the following submissions: 2.1. In order to establish that the contract is in the nature of a taxable service it is necessary to establish a 'client' and 'service provider' relationship exists between the two parties. A transaction cannot become commercial consideration in the absence of any 'client' and 'service provider' relationship as there will be no 'consideration' or 'supply' as is necessary for invoking the provisions of Service Tax. It is a settled law that any contract executed as a trustee without any profit or profit motive cannot be treated as an activi....
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.... placed on the judgment of Daawat Foods Ltd. v. Commissioner (Service Tax Appeal No. 51632 Of 2022) passed by Hon'ble CESTAT Delhi. The appellant, a rice miller, received grant-in-aid under a Ministry of Food Processing Industries scheme towards capital expenditure on its rice milling unit. The Tribunal held that for Service Tax to apply there must be a service provider, a service recipient, and consideration flowing between them. The grant "merely reimbursed capital expenditure" and could not be treated as consideration; the conditions were general in nature and imposed no specific service obligation towards the Government. 2.5. Similar view has been taken by the Hon'ble CESTAT in the case of - * Mineral Exploration Corporation Ltd. v. Commissioner [2015 (38) S.T.R. 421]; * Checkmate Services Pvt. Ltd. v. Commissioner [2024 (8) TMI 91 - CESTAT]; * Madhya Pradesh Consultancy Organisation Ltd. v. C.C.E., Bhopal [Final Order Nos. ST/ A/52927-52928/2017- CU(DB) in Appeal Nos. ST/342/2012 and ST/50304/2014] 2.6. In view of the above submissions, it is prayed that the confirmed demand of Rs.70,45,319/- may be set aside on merits. 2.7. So far as the de....
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....16th August 2010 To Chief Commissioners of Central Excise and Service Tax (All), Director General (Service Tax), Director General (Central Excise Intelligence), Director General (Audit),Commissioners of Service Tax (All), Commissioners of Central Excise and Service Tax (All). Subject: Service tax on commercial training and coaching clarification whether donation is consideration regarding Madam/Sir, A representation has been received seeking clarification whether donations and grants in-aid received from different sources by a charitable Foundation imparting free livelihood training to the poor and marginalized youth, will be treated as consideration received for such training and subjected to service tax under commercial training or coaching service. 2. The matter has been examined. The important point here is regarding the presence or absence of a link between consideration and taxable service. It is a settled legal position that unless the link or nexus between the amount and the taxable activity can be established, the amount cannot be subjected to service tax. Donation or grant-in-aid is ....
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....ent rather than being a 'consideration'. Admittedly, only the 'consideration' can be made liable to Service Tax. 11. The Hon'ble Supreme Court, affirming the decision of the High Court, in the case of Union Of India vs Intercontinental Consultants - 2018 (10) GSTL 401 has held as under: 10) The High Court, after taking note of the aforesaid provisions, noted that the provisions both amended and unamended Section 67 authorised the determination of value of taxable services for the purpose of charging service tax under Section 66 (which is a charging section) as the gross amount charged by the service provider for such services provided or to be provided by him, in a case where the consideration for the service is money. Emphasising on the words 'for such service', the High Court took the view that the charge of service tax under Section 66 has to be on the value of taxable service i.e. the value of service rendered by the assessee to the NHAI, which is that of a consulting engineer, that can be brought to charge and nothing more. The quantification of the value of the service can, therefore, never exceed the gross amount charged by the service provider for the service pr....
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....s actually provided by the service provider. 12. We find that in the present case, the Revenue has not come out with any evidence that the appellant was providing 'Business Exhibition Service' to various State Governments as has been alleged in the SCN. There is no evidence that for providing this service or any other service, the appellant has raised the Invoice and received the 'consideration'. All they have received is in the form of Grant, which is fully accountable for them for the expenditure incurred out of the same. Therefore, we have no hesitation to hold that the Grant received can never be equated to the 'consideration' received for any service provided by the appellant. As discussed above, the Grant is more in the nature of reimbursement [albeit received first and accounted for subsequently]. Therefore, applying the decision of the above referred case law of Intercontinental, we set aside the confirmed demand on merits. 13. We have also considered the case laws cited by the appellant, which are discussed below: 2010 (20) S.T.R. 475 (Tri.-Bang) APITCO LTD. Vs CST, HYDERABAD Affirmed by Supreme Court 2011 (23) S.T.R. J94 (S.C.) [02-05-2011] 6. We have....
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....ience principles. The revenue has not shown that any techniques or principles of pure and applied sciences were applied in the implementation of the governmental schemes by the assessee. In the case of Administrative Staff College of India (supra), this Bench held that, as the research activities of the assessee (Administrative Staff College) were related to social science, they would not be within the ambit of "scientific or technical consultancy" and hence no service tax could be levied under that category, which view is squarely applicable to the facts of the present case. The view taken by the Tribunal in the above case stood affirmed by the Apex Court in the above case with the dismissal of the department's Civil Appeal filed against the Tribunal's Order. 7. For the reasons noted above, we hold that any amount of service tax is not leviable on the grants-in-aid received by the assessee from the governments, as project-implementing agency of the governments, during the period of dispute. 2015 (38) S.T.R. 421 (Tri. - Mumbai) MINERAL EXPLORATION CORPORATION LTD. Vs COMMR. OF C. EX., NAGPUR 6.3 Coming to the issues whether any service has been provided b....
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....d copies of reconciliation at Page No.161 to 170 of the appeal paper book. They have provided five different services. While paying the Service Tax and filing the Returns, some mismatch has taken place between these services, including the services for which the Service Tax is payable on RCM basis. Overall for the period 2013-14 they have excess paid ST to the extent of about Rs.11 lacs and similarly for 2014-15 they have excess paid ST to the extent of Rs.7.04 lacs. Therefore, as the appellant, there is no short payment at all resulting any loss to the Revenue. 18. We have gone through the reconciliation statements. However, it would not be possible for us to verify these figures individually to come to a conclusion about the excess payment or otherwise. However, we find that if the ST is to be paid on RCM basis, this would be available to the appellant as Cenvat Credit. Therefore, this results in a revenue neutral situation. Moreover, all the entries are properly recorded in their books of account. Hence, no case of suppression can be alleged against the appellant. 19. The Kolkata Bench in the case of Ashirwad Foundaries Pvt. Ltd Vs CCGST vide Final Order No.75331/2020 date....
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....ent, rural upliftment, Agricultural and Agro and Food Processing sectors other industrial sector for their overall development: (v) To invest the money and the property of the Association not immediately required for the purpose of the business upon such securities of In such manner as may from time to time be determined. (w) To borrow or raise any moneys required for the purpose of the Association upon such terms and in such manner and on such securities as may be determined and in particular, by the issue of the debentures charged upon ail or any of the property of the Association. (x) To aid and to receive air from any other Society, Association, Company, Corporation, Firm, Partnership or person promoting or formed or intended to promote any of the objects of the Association and to subscribe to aid such Society. Association, Company, Corporation, Firm, partnership or person with a view to obtain any advantage or benefit for the purposes of the Association and to subscribe to any fund or society as may be considered preserving from time to time. *0x00 To promote, and, encourage or undertake all activities for public good and national welfare in India, to provide relie....