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TMI Blog2006 (6) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... Religious and Charitable Trust. They engaged themselves in getting jobs for the youth who are registered with them on 'No Profit No Loss' basis. On the insistence of the department, they paid an amount of Rs. 26,961/- towards Service Tax liabilities for the period from April, 2001 to December, 2003. The original authority confirmed the Service Tax and also imposed penalty of Rs. 500/- under Section 75A of the Finance Act, 1944 towards the respondents' failure to apply for registration in time. The respondents approached the Commissioner (Appeals). The Commissioner (Appeals) held that the question of levy of Service Tax arises only if the respondents are a 'Commercial concern'. Once it is clear that they are not a commer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Chartered Accountant, appeared on behalf of the respondents. He urged the following points:- (i) The respondent M/s. 'Employ Me' is a unit of the DIOCESE, Mangalore. It is a Religious and Charitable Institution. The services rendered were on a cost recovery basis and not on commercial consideration. (ii) The respondent gives training to youth in leadership, welfare activities, irrespective of caste and creed. Later, they are recommended for employment. (iii) The registration was done only because of coercive measures adopted by the department. (iv) Since the term 'Commercial concern' has not been defined in the Finance Act or Service Tax Rules, the same has to be understood and given a meaning in its popular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in view of the predominant religious nature of the service. The principle adopted in the above decision is clearly applicable to the present case. (x) In the case of Kerala State Ex-Service League v. CCE, Trivandrum - 2006 (3) S.T.R. 400 (Tri-Ban.) = 2004 (173) E.L.T. 434 (Tribunal), it has been held that Charitable Society is a service organization and not a commercial concern irrespective of its making bids or filing tenders which alone does not make it a commercial concern. It works for the welfare of its members at No Profit No Loss basis. 6. We have gone through the records of the case carefully. The respondent is a unit of DIOCESE of Mangalore. This is not disputed. The respondent. organization imparts training to youth in leaders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the respondent. Be that as it may, a Commercial concern, from the popular meaning of the word as indicated in the dictionary, means a concern Engaged in any activity with profit motive. Revenue's understanding that profit motive is not necessary for a Commercial concern is not at all correct. The Audited Accounts of the respondent unit reveal that they had not made any profit out of these activities. There is also no indication that fees were being charged specifically for providing employment to the youth. From the facts of the case, we are of the view that the respondent is not a 'Commercial concern'. Therefore, they would not come within the meaning of Manpower Recruitment Agency as defined in the Finance Act, 1994. They a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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