Biyani Shikshan Samiti Vs Union of India (Rajasthan High Court)
The Rajasthan High Court disposed of the present batch of writ petitions after recording the consensus of all counsel that the issue stood concluded by its earlier judgment in D.B. Civil Writ Petition No. 9556/2024, Rajasthan Technical University, Kota vs. Union of India & Ors., decided on 23.02.2026. Applying that decision mutatis mutandis, the Court allowed the present petitions.
The earlier decision had framed and answered four principal issues. On the first issue, namely whether grant of affiliation constitutes a supply of service under Section 7 of the Central Goods and Services Tax Act, the Court held that supply arises only when an activity is carried out in the course or furtherance of business. It found that grant of affiliation is a statutory function enabling a university to discharge its core educational mandate through affiliated colleges. Applying the doctrine of ejusdem generis to Section 2(17), the Court held that affiliation cannot be equated with trade, commerce or any activity of a commercial character and, therefore, does not constitute a supply of service.
On the second issue concerning whether affiliation fees amount to consideration, the Court held that affiliation is compulsory for colleges and does not involve choice, bargaining or reciprocity. It found that the fee is a statutory levy rather than payment for a negotiated service and concluded that the essential element of consideration was absent.
