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2022 (8) TMI 707 - HC - Service TaxValidity of show cause notice - University - Levy of service tax - affiliation fees, penalty / fine for delayed payment from Colleges affiliated to it - rents from certain buildings rented out - case of the petitioner is that, it is imparting education and the entire affiliation fee received by it is towards the same and as per the provisions of Section 66D of the Act and N/N. 25/2012-ST dated 20.06.2012. HELD THAT:- It is not the case of the respondents that the consideration received towards the educational activity is taxable for service tax. It is their case that affiliation fee collected by the petitioner – University cannot be considered as a consideration for providing educational services - the act of University in granting affiliation to a private college has to be considered as a service in furtherance of providing education is erroneous. Whether the petitioner is liable to pay the service tax on the rent received by it from the buildings let out by it? - HELD THAT:- Normally, a person is bound to reply to the show cause notice issued by the Authority and it is not appropriate for him to approach the Court without doing the same. However, in the instant case, the dispute does not pertain to quantification of service tax, but whether the respondents – Authorities have jurisdiction to demand service tax for the activity of petitioner – University in providing education. Further, it is the clear stand of the respondents – Authorities before this Court that the activity of the petitioner – Institution in granting affiliation to Colleges and consideration received towards it is taxable under the Service Tax. It is not appropriate to relegate the petitioner before the adjudicating Authority - Petition disposed off.
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