TMI Blog2006 (6) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... ;Commercial concern' engaged in the service of Manpower Recruitment liable to pay Service Tax on fees or remuneration received. The respondents pleaded that they are a unit of DIOCESE of Mangalore, which is a 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t taxable service provided by any person for consideration on commercial basis are liable for service tax. 4. Shri R.K. Singla, the learned JCDR reiterated the Grounds of Appeal. 5. Shri Edmond D'Souza, the learned 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 co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03 (157) E.L.T. 182 (Tribunal) held that receipt of any consideration by way of rent or in the form of 'Padakanika' for organising any religious function is not liable to be charged under the Service Tax on Mandap Keeper 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 memb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent for training. This fee is definitely not a consideration given by a client to the Manpower Recruitment Agency. Revenue has not shown with evidence that the Organizations where the youth are employed paid any consideration 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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