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TMI Blog2018 (9) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... fees collected from the students, grants-in-aid received from Central Government and the income generated by providing consultancy work the appellant had been procuring services of Central Public Works Department (CPWD) in terms of an MOU dated 20th December, 2008 for construction of hostel blocks, Sports Complex, academic block, literature hall complex, canteen, hospital, staff residential quarters etc. in the premises of the appellant. The said services procured by the appellant from CPWD are alleged to be the support services related to above contract provided by the Government to a body corporate (the appellant) holding the appellant as a business entity. The said demand was proposed vide show cause notice dated 28th June, 2016 and was confirmed by the impugned order. Resultantly, the present appeal. 3. We have heard Mr. Awdesh Kumar Pandey, ld. Advocate for the appellant and Mr. Amresh Jain, ld. D.R. for the Revenue. 4. It is submitted on behalf of the appellant that the adjudicating authority below has committed an apparent error while holding the appellant as a business entity, despite the fact that the appellants are involved in the field of imparting education and the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some common characteristics and constitute a genus) and giving natural wide meaning there to leads to absurdity , the given word takes colour from the neighbouring words and is read as ejusdem generis the accompanying word in a restricted sense. It was clarified that the word 'business' and 'business entity' in Section 65 B (17) and Section 66 D (1) (a) (iv) of the Finance Act had therefore to be read ejusdem generis to industry and commerce. Resultantly, both these terms referred to profit oriented commercial business entities only. In another adjudication in the case of Senairam Doongamall vs. Commissioner of Income Tax - AIR 1961 S.C. 1579, the Hon'ble Supreme Court has held that word business denote an activity with the object of earning profit. The appellant herein has been referred in show cause notice as is a unit of Maulana Azad National Institute of Technology, Bhopal. The said Institute is one of the National Institutes of Technology established by Central Government under an Act of Parliament i.e. National Institute of Technology Act, 2007. Thus, once the purpose of parent Institute is to be engaged in education and in creating and disseminating knowledge through dif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xx 2.Definitions. - For the purpose of this notification, unless the context otherwise requires, - xx xx xx (s)"governmental authority" means a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under Article 243W of the Constitution; xx xx &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 65 B (49) which read as follows:- Section 65 B (49) "support services' means infrastructural, operational, administrative, logistic, marketing or any other support of any kind comprising functions that entities carry out in ordinary course of operations themselves but may obtain as services by outsourcing from others for any reason whatsoever and shall include advertisement and promotion, construction or works contract, renting of immovable property, security, testing and analysis; The bare perusal of this definition makes it clear that for any services received to be called as support service, the important ingredient is that the support should have comprised of such functions that the recipient is able to carry out in ordinary course of operations themselves. However, they have outsourced the same to someone else. In the present case, as discussed above, the appellant is carrying out the function of imparting education and the technical knowhow/consultancy but the service received from CPWD is that of construction of various civil structures. It becomes absolutely clear that the services received are not otherwise the activity of the appellant themselves. Outsourcing there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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