Pondicherry University Vs Joint Commissioner of GST & Central Excise (Madras High Court)
The writ petition challenged Order-in-Original No.27 of 2019 (ST) dated 29.10.2019 confirming service tax demand of ₹1,19,85,616/- on affiliation/recognition services and renting of immovable property for the period October 2013 to June 2017, along with interest under Section 75 and penalties under Sections 77 and 78 of the Finance Act, 1994. A consequential recovery notice dated 06.10.2020 was also issued.
The petitioner contended that services provided to affiliated colleges were covered under the “negative list” in Section 66D(l)(ii) of the Finance Act, 1994 until its deletion in 2016, and thereafter exempt under Entry 9 of Mega Exemption Notification No.25/2012-ST as amended. Reliance was placed on earlier Single Judge decisions granting relief to other universities.
The respondents argued that the writ was barred by limitation as no statutory appeal was filed within the prescribed period under Section 85(3)(A). Relying on Supreme Court precedent, it was contended that High Courts cannot entertain writ petitions beyond statutory limitation.
The Court held the writ petition liable to dismissal on the ground of delay and laches. On merits, it held that Section 66D(l)(ii) applied only to services by way of education as part of curriculum leading to recognized qualifications and did not cover affiliation or inspection services. It further held that affiliation services were not “auxiliary educational services” nor covered under Entry 9 of the Mega Exemption Notification. The exemption for renting of immovable property was available only for a brief period between 01.07.2012 and 31.03.2013 and stood withdrawn thereafter.
