TMI Blog2011 (3) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... temporarily or otherwise, to a client - However with effect from 1.5.2006, the words “commercial concern” have been replaced by the words “any person”. This would indicate that the Government is of the view that prior to 1.5.2006, services rendered by the institutes which are not commercial concern would not fall under the service tax net - Appeal is disposed of - 194 of 2006 - 264/2011 - Dated:- 30-3-2011 - M V Ravindran, P Karthikeyan, JJ. Appellant Rep by: Shri D P Nagendra Kumar, Jt.CDR Respondent Rep by: Shri ARJ Nayak Sai Prasad, Advs. Per: M V Ravindran: This appeal is filed by the Revenue against the Order-in-Appeal No. 56/2006-Central Excise dated 28.4.2006. The assessee has also filed Cross Objection No. ST/C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rting education and at times facilitates recruitment on their campus through interviews which is incidental or ancillary to their main objective cannot be called as a commercial concern, as they are not engaged in trade or commerce. Further the essence of trade or commerce viz., the profit motive. No commercial concern does the business for the sake of business without a profit motive. The case law cited by the appellants in the case of Deputy Commissioner Vs. South India Textile Research Association and State of Tamil Nadu Vs. Cement Research Institute are very much relevant and the ratio of decisions rendered are squarely applicable to the appellants case. In view of the above I hold that the appellants are not a commercial concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact or in law. It is an undisputed fact that the Institute is organizing / conducting periodical Campus Recruitment programmes and various business organizations participate in the said programmes and recruit the students / candidates for employment in their organizations. As a consideration towards service, the Institute collects fee from all the business organizations for participation and for recruitment of the candidates separately. It is admitted fact that the Institute receives a consideration for the services provided by them. Therefore, the activity of the Institute in allowing interviews inside their campus for a consideration is an activity of Commercial Concern. The activity of the Institute to facilitate "Recruitment" to variou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formed the Department of their activity pertaining to above service or its taxable value in any other manner. The evasion of Service Tax is clearly established from the facts of the case. The assessee violated the provisions of law with intent to evade payment of Service Tax. Therefore, the extended period of five years under Section 73 (1) of the Act as invoked in the show cause notice is legally tenable. In view of the above, the impugned OIA is not proper nor legal and is liable to be set aside. 4. The learned Counsel on behalf of the respondent submits that the period involved in this case is prior to 1.5.2006 and the Board vide Circular No. 86/4/2006-ST dated 1.11.2006 has clarified that the institutes like IITs or IIMs were not liab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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