Case Law Details
Mody Education Foundation Vs Commissioner of Central Excise (CESTAT Delhi)
CESTAT Delhi held that the hostel service and education services are naturally bundled in the ordinary course of business and it is the education service that gives the essential character to such bundle. Accordingly, hostel service is not subjected to levy of service tax.
Facts- The appellant is a society registered under the Societies Registration Act, 1860. It runs a boarding school called ‘Mody School’, located at Laxmangarh in Sikar, Rajasthan, for girls from third to twelfth standard.
An investigation was initiated against the appellant whereafter it was observed that the appellant had failed to pay service tax in respect of various services provided/received by it.
A show cause notice dated 20.09.2016 was, therefore, issued to the appellant proposing a demand of service tax of Rs. 02,02,01,879/- with interest and penalties. It was mainly alleged that the hostel services provided by the appellant to the students, being an auxiliary education services, was not exempted under Serial No. 9 of the Notification dated 20.06.2012 during the period 01.04.2013 to 10.07.2014 and thus, taxable.
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