Society for Innovation and Development Vs Commissioner of Service Tax (CESTAT Bangalore)
The appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore, was filed by the Society for Innovation and Development (SID) against an Order-in-Original dated 13.09.2010 passed by the Commissioner of Service Tax, Bangalore.
The appellant provided Scientific or Technical Consultancy Services by using the intellectual and infrastructural resources of the Indian Institute of Science (IISC), Bangalore. It also collected licence fees relating to immovable property and participated in activities such as organising symposiums and scholarship management. During audit, the department observed that the appellant had delayed payment of service tax, resulting in an interest liability of Rs.21,014 under Section 75 of the Finance Act, 1994. This demand was not disputed by the appellant.
The department further alleged that the appellant had entered into tripartite Memoranda of Understanding (MoUs) with companies such as BIGTEC and Micro Labs along with IISC for collaborative research and development programmes. Under these arrangements, the appellant facilitated use of infrastructure and buildings belonging to IISC and collected licence fees. Revenue treated these activities as “Renting of Immovable Property Services” under Sections 65(90a) and 65(105)(zzzz) of the Finance Act, 1994 and demanded service tax of Rs.19,86,335 for the period June 2007 to March 2008.
