TMI BlogService tax applicability on Construction of college BuildingX X X X Extracts X X X X X X X X Extracts X X X X ..... Our clients had received certain amounts from a private college (Registered u/s 12AA ) for construction of building in 2016. The primary contract was signed in 2012 and till July 2014, the client was utilising service tax exemption under SNo 9 of NN 25/2012 (auxiliary education services) and not paying any service tax. However, such line item was deleted from the notification on 11.7.2014 bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t client did not discharge tax on receipts in 2016 also. The matter is currently under appeal after being decided against the client in adjudication. Can now it be claimed that service is exempt under SNo 13 of NN 25/2012 which grants exemption for construction of building owned by entity registered u/s 12AA and meant predominantly for religious use. I recently came across Principal Bench D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elhi decision in Service Tax Appeal No. 50770 of 2022-SM in case of M/s. S. Kumar Builders - 2022 (11) TMI 47 - CESTAT NEW DELHI , where it was held that even education would be deemed to be covered under serial no. 13 and thus construction of school for a 12AA trust was held to be exempt. Would like the views of the experts? - Reply By Amit Agrawal - The Reply = I see no harm usi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the judgement of M/S. S. KUMAR BUILDERS VERSUS COMMISSIONER OF CENTRAL GOODS SERVICE TAX CENTRAL EXCISE, JABALPUR (MADHYA PRADESH) (as reported in - CESTAT NEW DELHI) while defending your client BOTH on merits as well as limitation (i.e. bonafide belief, not having any intention to evade payment of taxes etc. so as to avoid exempted period to issue SCN, to avoid penalty u/s 78 ). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I am presuming here that 'factual aspects' in order to claim such exemption is on your client's case-records (in you reply to SCN, relied upon documents etc) and you need not present any new evidence to support factual aspects to claim exemption - while preferring your appeal - to claim similar exemption as done in this case-law. However, I am not that sure - at this stage - if yo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur client was entitled to exemption from service tax till 10.07.2014 under S. No. 9 of NN 25/2012 (auxiliary education services). Depending upon submissions at first stage (during investigation / scrutiny, while replying to SCN, during PH before original adjudicating authority etc.) and considering various factual aspects, contents of SCN and findings of OIO, you may need to finetune your leg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al strategy going forward. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. - Reply By Amit Agrawal - The Reply = *Please read relevant Para from above post as follows: However, I am not that sure - as of now - if your client was entitled to exemption from service tax till 10.07.2014 under S. No. 9 of NN 25/2012 (auxiliary educati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on services). If this point is relevant for your client's case , one needs to be reasonably sure about availability of this exemption. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. - Reply By KASTURI SETHI - The Reply = (i) As per EXCUS (R.K.Jain's Electronic Library), the judgement of S.Kumar Builders has NOT been cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llenged by the department so far. So this case law can be relied upon. (ii) The definition of education services has to be taken care of. - Service tax applicability on Construction of college Building - Query Started By: - ROHIT GOEL Dated:- 30-11-2023 Last Replied Date:- 2-12-2023 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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