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2014 (8) TMI 783 - AT - Service TaxBusiness Auxiliary Service - services relating to Procurement of goods or services, which are inputs for the client - exemption under Notification 14/2004-ST dated 10/09/2004 - Held that:- There is no dispute that MKCL is rendering services in the field of computer education and the appellant acts as an authorised lead agency. The functions entrusted to the appellant entail coordination between the authorised training centres (ATCs) and ensure that the courses conducted by the ATCs are as prescribed by MKCL, ensuring adequate infrastructure for conducting the courses, collection of fees, remitting the same to the MKCL and so on. These activities undertaken by the appellant would certainly come within clause (d) of the exemption Notification 14/2004-ST which is “a service incidental or auxiliary to any activity specified in clauses (a) to (c)” and clause (c) deals with provision of service on behalf of client. It is a settled position in law, as explained by the hon'ble apex Court in the case of Mangalore Chemicals and Fertilisers Ltd. [1991 (8) TMI 83 - Supreme Court of India] that there are two stages of interpreting an exemption Notification. In the first stage, whether the appellant falls within the exemption clause, strict interpretation is required to be made. Once the appellant falls within the scope of exemption, a liberal construction has to be adopted. As the activity undertaken by the appellant is incidental or ancillary to the provision of service by the client, the appellant falls within the exemption; therefore a liberal interpretation has to be given and the various activities undertaken by the appellant would become eligible for the benefit of the exemption. lower appellate authority's order in denying the benefit of exemption to the appellant during the impugned period is unsustainable - Decided in favour of assessee.
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