Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2024 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (4) TMI 399 - AT - Service TaxTaxability - research projects - educational programs - fees charged to students in the post graduate student status program (PGSSP) offered by the appellant - externally funded research projects - suppression of facts or not - Extended period of limitation - penalties. Taxability of the fees collected from students in the PGSSP - HELD THAT:- As far as PGSSP is concerned, IIIT does not fall under the definition of educational institution as the said course is not meant for obtaining any qualification or degree recognised by law - this interpretation of the notification/negative list cannot be agreed upon. It is settled law that a notification must be read in its plain terms. IIIT-H undisputedly offers recognised degree programs also recognised by UGC as a deemed to be university, hence it is an educational institution: its services to its students, including permitting PGSSP students to attend regular degree courses, are held exempted. Whether research funding was taxable? - HELD THAT:- The focus on “nexus” between the funds and activity funded is not conclusive to establish that a service was provided. As regards the finding of shared IP, it is noted that the appellant’s contention, supported by annexures in its appeals that, though IP was shared as per agreements, in fact it was placed in the public domain by publication by the appellant’s scholars, remains unrefuted by Revenue - a single factor is not determinative of ‘service’. Considering the facts and circumstances in which the appellant carries out its research activity, and the objectives thereof, it is found that the appellant’s objectives and focus are on its academic activity which is carried out through conventional classroom teaching as well as through participation of students in the research projects that form part of academic engagement in this institution. These facts have not been disputed by Revenue - “service” in terms of section 65B(44) of the Finance Act 1994 was not provided by the appellant to its funders for research projects - the demands of service tax made under the orders impugned in the two appeals set aside. Extended period of limitation - Suppression of facts or not - penalty u/s 78 of FA - HELD THAT:- There was no “suppression” of facts - Hence neither extended period of limitation nor penalties under section 78 were justifiable. All penalties are set aside. The impugned order is set aside - appeal allowed.
|