Case Law Details
Bangalore University Vs Principal Additional Director General (Karnataka High Court)
Held that the act of University in granting affiliation to a private college is service in furtherance of providing education and accordingly the affiliation fees collected is exempted from service tax.
Facts- Petitioner is Bangalore University and is in receipt of certain amounts collected by way of affiliation fee from Institutions affiliated to it. Respondent No.1 has issued a show cause notice proposing to levy service tax on the affiliation fee collected by the petitioner. Aggrieved by the same, the instant writ petition is filed.
The main question that arises for consideration is whether the petitioner is entitled to approach this Court merely on the issuance of show cause notice.
Conclusion- Normally, a person is bound to reply to the show cause notice issued by the Authority and it is not appropriate for him to approach the Court without doing the same. However, in the instant case, the dispute does not pertain to quantification of service tax, but whether the respondents – Authorities have jurisdiction to demand service tax for the activity of petitioner – University in providing education. Further, it is the clear stand of the respondents – Authorities before this Court that the activity of the petitioner – Institution in granting affiliation to Colleges and consideration received towards it is taxable under the Service Tax.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
