Auxiliary Educational Services provided to Educational Institutions are Eligible for Service Tax Exemption under Exemption Notification: CESTAT [Read Order]
![Auxiliary Educational Services provided to Educational Institutions are Eligible for Service Tax Exemption under Exemption Notification: CESTAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/10/Auxiliary-Educational-Services-Educational-Services-Educational-Institutions-Service-Tax-Exemption-Exemption-Notification-Service-Tax-CESTAT-taxscan.jpg "Auxiliary Educational Services provided to Educational Institutions are Eligible for Service Tax Exemption under Exemption Notification: CESTAT [Read Order]")
The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the auxiliary educational services provided to educational institutions are eligible for service tax exemptions under exemption notification. N Kumar Associates International, the appellant assessee was engaged in providing taxable service under the category of ‘outdoor catering’...
The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the auxiliary educational services provided to educational institutions are eligible for service tax exemptions under exemption notification.
N Kumar Associates International, the appellant assessee was engaged in providing taxable service under the category of ‘outdoor catering’ service, defined under Section 65(76a) read with Section 65 (105) (zzt) of the Finance Act, 1994 and entered into the agreements with Indian Institute of Technology (IIT), Kanpur for providing the mess services.
The assessee appealed against the order passed by the Commissioner (Appeals) for confirming the service tax demand of Rs.21,84,055/- along with interest and imposition of penalties.
S.B.P Shinsha, the counsel for the assessee contended that the Central Government Notification No.25/2012-Service Tax had exempted the services including auxiliary educational services from payment of service tax provided to an educational institution.
Also submitted is that the auxiliary educational services" means any services relating to imparting any skill, knowledge, education, or development of course content or any other knowledge-enhancement activity.
Nivedita Sinha, the counsel for the department relied on the decisions made by the lower authorities and contended that the demand raised by the department was as per the law and liable to be sustained.
The Bench observed that on reading the central government circular, it was clear that the catering service provided to the students in the educational institution should qualify for the exemption as per the notification.
The two-member bench comprising Mohanty (Judicial) and Pardhibam (Technical) held that the catering service was eligible for service tax exemption.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
