CESTAT set aside the order of the Commissioner(Appeals) and allowed the refund of the service tax to the appellant and observed that merely charging fees will not make the position that the appellant institute a commercial institute
Brief Facts:
The appellant filed a refund claim for a refund of service tax under Section 11B of the Central Excise Act for the construction of a medical college building. During the scrutiny of the claim, certain discrepancies were found and accordingly, a show cause notice was issued to the appellant which rejected the refund claims and the same was upheld by the Commissioner (Appeals) who held that the activity of running a medical college was commercial in nature and same cannot be construed as a non-commercial activity.
Contentions of the Applicant:
Observations of the Court:
The tribunal after analyzing various documentary evidence, certificates and registrations stated that the construction of the building for which the refund claim has been filed is used for educational purposes and the object of the use of the building is not for commercial purposes and the building constructed not being commercial and industrial construction does not fall under the category of taxable services, as the same is not used for commercial and industry but it is used for providing education.
It was further stated that service tax would not be charged and that merely charging fees will not make a position that the appellant institute is not a non-commercial concern.
The decision of the Court:
The appeal was allowed and the impugned order was set aside.
Case Title: Gujarat Adani Institute Of Medical Sciences vs. C.C.E. & S.T.-Rajkot
Coram: Hon’ble Mr. Ramesh Nair, Member (Judicial) and Hon’ble Mr. C.L Mahar, Member (Technical)
Case No.: Service Tax Appeal No. 222 of 2012 – DB
Advocate for the Applicant: Mr. Hardik Modh
Advocate for the Respondent: Mr. P.K.Singh
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