TMI Blog2021 (4) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... an be no doubt that a college as per the UGC regulations will have to be affiliated to some University. Therefore, the affiliation fees as well as the inspection commission collected by the University are in the nature of statutory levies. By performing those activities, the petitioner is only discharging a statutory function and the fees collected by the petitioner cannot be amenable to levy of Service Tax. It is true that authorisation is given to the University to maintain the property. But then, there is clear commercial element in these transactions. The University is renting the property to other institutions and collecting rent from them. Therefore, the second respondent was justified in raising demand for the said service. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfied with them, the impugned order came to be passed confirming the proposals set out in the show cause notice. The said order is assailed in the writ petition. 3. The respondents have filed a detailed counter affidavit. In the said counter affidavit, the stand taken by the second respondent in the impugned order is reiterated. The learned Standing counsel took me through the averments set out in the counter affidavit and called upon this Court to sustain the impugned order and dismiss this writ petition. 4. I carefully considered the rival contentions and also went through the materials on record. 5. The learned counsel appearing for the petitioner drew my attention to the Circular No.89/7/2006-ST dated 18.12.2006 issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se activities, the petitioner is only discharging a statutory function and the fees collected by the petitioner cannot be amenable to levy of Service Tax. 9. However, the demand of the respondents with regard to renting of immovable property will stand on a different footing. The learned counsel appearing for the petitioner draws my attention to Section 4(18) of the Act to sustain the contention that the petitioner was only discharging statutory function. 10. I am unable to accept the said proposition. It is true that authorisation is given to the University to maintain the property. But then, there is clear commercial element in these transactions. The University is renting the property to other institutions and collecting rent from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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