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Case law on services received from CPWD by an educational institution; outside the ambit of taxability
MAULANA AZAD NATIONAL INSTITUTE OF TECHNOLOGY Vs C.C.E., BHOPAL
Service Tax - Appellant is an educational institution – demand of service tax on the premise that the services received by the appellant from CPWD fall under the ambit of the support services and appellant is a business entity – scope of Mega Exemption Notification.
HELD - 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 thereof will not bring the service received under the category of support service.
Therefore, the authority below has formed a wrong interpretation of the definition while holding the impugned services received as the support services – the impugned services received by the appellant from Governmental body are the services received by an Institute established solely for educational purposes and not for the purposes of profit and the same is out of the ambit of taxability - the order under challenge is hereby set aside and appeal is allowed