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TMI Blog2024 (7) TMI 1400X X X X Extracts X X X X X X X X Extracts X X X X ..... Order-in-Original bearing no. DLI-SVTAX-002-COM-013-16-17 dated 12.09.2016 and Order-in-Original No. 85-86/COMMR/DELHI EAST/A.P./2021-22 dated 27.04.2022. The facts relevant for the adjudication are as follows: 1.1 The appellant is engaged in providing services to the colleges or institutions imparting architectural education for granting recognition. While conducting an investigation against the appellant it was found that appellant was receiving amounts under the heads of Registration fees, Annual Renewal Fees, Restoration Fee, Duplicate Certificate fees, Fine from Architects, Apportionment of One time Renewal Fees, Equivalence Fees, RTI Fees, Nata Fees, Sale of Architectural Books, Advances recovered from staff, Maturityvalue of fixed deposit receipts, TDS refunds, Part fees on account, Arbitration fees, Interest received etc. Department formed an opinion that none of these activities are covered under the mega exemption Notification No.25/2012-ST dated 20.06.2012 nor fall under negative list of Section 66D of Finance Act 1994. The activities rendered by appellant were alleged to be taxable activities to which the tax liability has not been discharged by the appellant. It was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arges to meet certain expenditure incurred including Honorarium, travelling and stay arrangement of inspector/expert, procurement and maintenance of softwares, ERPs etc. The prescribed fees are collected as the regulatory body for self-financing its expenses without any motive of carrying out any kind of commercial/economic activity of profit. The activity is specifically exempted vide Mega Exemption Notification No. 25/2012. The denial of benefit under said notification to the appellant in the order under challenge is not sustainable. For these reasons, the order is prayed to be set aside and appeals are prayed to be allowed. Learned counsel has relied upon the following decisions: (i) Assistant Commissioner of Income Tax (Exemptions) Vs. Ahmedabad Urban Development Authority in Civil Appeal No. 21762 of 2017 vide its order dated 19.10.2022 (ii) M/s. Bureau of Energy Efficiency Vs. CST reported as 2019 (22) GSTL 25 (Tri.-Delhi) (iii) Madurai Kamaraj University Vs. Joint Commissioner of Goods and Service Tax & Central Excie, Madurai reported as 2021 54 GSTL 385 (Madra) (iv) Dr. MGR Medical University Vs. Principal Additional Directior General of Goods and Service T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts Act, 1972. c) COA conducts NATA examination on All India Basis as an admission/aptitude test for admission to B. Arch Course to ensure uniformity of admission standards. The COA also ensures that all students admitted possess the minimum standards as prescribed by the Architects Act, 1972 and Rules and Regulations thereunder. d) In order to ensure that the aforesaid standards are duly followed, the COA makes continuous evaluation of Colleges and Universities through its Assessors/Inspectors/ Experts and collects all information in a prescribed format from institutions admitting students. e) Further, the Appellant grants permission for admission and to conduct the architecture course as per its Minimum Standards of Architectural Education Regulations to the concerned Institutions (IITS, NITS, SPAs, Private Universities, Deemed Universities, affiliated colleges/schools, and autonomous institutions etc.). f) As stated in section 25 of the Architects Act, 1972 read with rule 29 of Council of Architecture Rules, 1973, every architect who holds the degree of B.Arch. and wishes to practice as an Architect, shall register himself with COA by submitting an application form with d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Architecture Rules. All kinds of the fees are apparently charged for inspection and approval of new institution as well as existing institutions admitting and offering recognised qualifications in the Architecture in India and for meeting out the other statutory objectives including promotion, research and development in architectural education. The appellant is publishing the articles/research papers for architects in magazines and books which are printed at no profit no loss basis and are supplied to architectural institutes, registered architects, council member etc. and some of the books are being supplied free of cost. We do not find any denial to thesefacts observed from record of appeal. Hence we hold that the impugned prescribed fees are collected by the appellants as a regulatory body for self financing its expenses incurred without motive of carrying out any kind of the commercial and economic activity of profit. 5.5 We observe that appellant admittedly is registered under Section 12AA of the Income Tax Act. The section provides that non-profit organisations like charitable trusts, welfare societies, NGOs, religious institutions etc. are entitled to tax exemption. The ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assigned to a sovereign/public authority or any authority under law in force does not constitute provision of taxable service to a person and therefore no service tax is leviable on the activities of such authority. CESTAT Mumbai while relying upon this circular in the case of MIDC Vs. CCE reported as 2014 TIOL 2022 (Tri.-Mum.) has held that the fee collected by the authority constituted under provisions of law for performing such activity which is in nature of compulsory/statutory levy as per the provisions of relevant statute and that it is deposited in the government treasury, such activity is undertaken as mandatory and statutory function and thus, do not come under the ambit of taxable service. Hence, no service tax is leviable on such activity. The Hon'ble Supreme Court in Ahmedabad Urban Development Authority (supra) has clarified that the income and receipts of statutory regulatory bodies which are for instance, tasked with exclusive duties of prescribing curriculum, disciplining professionals and prescribing standards of professional conduct, are prima facie not business or commercial receipts. However, this is subject to the caveat that if the assessing authorities discer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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