The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that service tax is not leviable on arranging and conducting station camps and other programs for educational purposes.
The National Edu Venture Institute sought a letter of clarification from the CCE that whether their activity of arranging and conducting station camps and other programs for their students are taxable or exempted under clause (f) of para 2 read with 9 item of exemption notification dated 20.06.2012.
Referring to the said letter the Additional Central Commissioner replied that the exemption notification only exempts services provided to or by an educational institute in respect of education by way of auxiliary educational services or renting of immovable property and the services provided by the National Edu Venture Institute cannot be considered as services provided for education as these are an optional additional service to the students and are taxable.
The counsel who appeared for the Department submitted that the appeal issued against the additional commissioner is not maintainable as the said order is not an appealable one as per section 85 of Finance Act but it’s only an administrative/ communicative letter clarifying the applicability of the notification.
The Counsel further submitted that as per the board circular no. 172/7/2013 dated 19.09.2013 clarified about the levy of service tax on certain services relating to education and such services is exempted from service tax. The services provided by the National Edu Venture Institution are not covered under the criteria of exemption of service tax.
None appeared on behalf of the respondent despite the notice therefore the appeal is taken up for the disposal
The two-member bench consisting Ramesh Nair (Judicial member) and C.L. Mahar (Technical member) after considering the submissions from the revenue stated that the activities provided by the National Edu Venture Institution is nothing but outdoor educational activities and outdoor games and activities are very much part of curriculum of education.
The bench further stated that in the present era all educational institution does not have in house facility to provide extra curriculum of education therefore they outsource to get the best possible result in low cost. Outsourcing such activities do not cease to be educational activity. Therefore, the activities carried by the National Edu Venture Institution is related to education and is not leviable for service tax.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
