Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 1112 - AT - Service TaxCommercial concern or not? - Works contract service - Industrial and commercial construction - service tax on the value of FoC (Free of Charge) materials supplied by the contactees - argument of the Revenue that in the instant case the Maharaja Agarsen Hospital, the said hospital, if they are providing service for consideration, they cease to be for charitable purpose and it amounts to commercial purpose - Held that:- The said contention has got no merits in view of the ruling of Hon’ble Supreme Court (Const. Bench) in Surat Art & Silk Manufacturers Association [1979 (11) TMI 1 - SUPREME COURT], where it was held that even if a charitable institution charges some amount and/or even if they have some surplus from the operations, that will not render the institution as not for charitable purpose, or a non-profit organisation - the learned Commissioner rightly granted the rebate for the material component under the admitted facts and circumstances. Penalty - works contract service - Held that:- It is apparent that that service tax was in arrears due to financial crunch being faced by the appellant assessee. During the relevant period, several employees had left due to its bad financial position, resulting into non-compliance of their tax obligations - penalty set aside by invoking section 80. The appellant shall be liable to deposit the interest on the tax amount for delayed payment, if not deposited so far. Appeal allowed in part.
|