The Karnataka State Akkamahadevi Womens University And Anr vs. The Principal Additional Director General And Ors
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The petitioners, Karnataka State Akkamahadevi Women's University and its Vice-Chancellor, filed a writ petition challenging two orders dated October 31, 2023, issued by the Deputy Commissioner of Commercial Taxes (Audit-1), Vijaypur (Respondent No. 4). The dispute concerns the levy of service tax on an affiliation fee paid by various colleges to the university. The petitioners argue that the provision of education is an exempted service under the Finance Act, 1994, and therefore, no service tax can be levied on such fees. They rely on previous judgments of the High Court on similar matters.
Held
The Court allowed the writ petition. It quashed the impugned orders dated October 31, 2023, issued by the Deputy Commissioner of Commercial Taxes (Audit-1), Vijaypur. The Court reasoned that the issue was squarely covered by its previous decisions in WP No. 112/2019 and WA No. 856/2022. In those cases, the Court had held that the provision of education falls under the exemption list as per Clause (1) of Section 66D of the Finance Act, 1994, and therefore, service tax could not be levied on such services. The Court found that the same principle applied to the affiliation fee in the present case. Consequently, no further proceedings could be taken regarding the impugned orders. The ratio decidendi is that affiliation fees paid by colleges to a university for the provision of education are exempt from service tax under Section 66D(1) of the Finance Act, 1994, based on prior High Court pronouncements.
Key Issues
1. Whether service tax can be levied on the affiliation fee paid by colleges to the university, considering that the provision of education is placed in the exemption list under Clause (1) of Section 66D of the Finance Act, 1994? Petitioner's Contention: The petitioner argued that the issue is covered by prior judgments of this Court, specifically an order dated July 26, 2022, in WP No. 112/2019 and WA No. 856/2022 dated July 30, 2024. These judgments held that providing education is an exempted service under Clause (1) of Section 66D of the Finance Act, 1994, and thus, no service tax could be levied. The petitioner contended that this principle should equally apply to the present case. Revenue's Contention: The judgment does not record any specific arguments made by the respondents.
Sections Cited
Section 66D
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER (PER: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ)
The petitioners are before this Court seeking for the following reliefs;
a. Issue a writ or direction in the nature of writ of certiorari or any other writ or direction to quash the impugned order in No.DCCT(A)-1/VJP/GST/2023- 24/B-700 dated 31.10.2023 vide Annexure-E and order in DCCT(A)-1/VP/GST/2023-24/B-699, dated 31.10.2023 vide Annexure-F issued by the Respondent No.4,
b. Writ or order or directions deemed fit to this Hon’ble Court in the circumstances of the case, in the interest of justice and equity with cost. NC: 2024:KHC-K:6876
The counsel for the petitioner submits that the lis in the present matter between the petitioner and the State is as regards the levy of service tax on an affiliation fee paid to the university by various colleges.
Sri.Ravindra Reddy., learned counsel for the petitioner submit that this issue is covered by an order dated 26.7.2022 in WP No.112/2019 as also in WA No.856/2022 dated 30.7.2024, wherein this Court has come to a conclusion that providing of education is placed in the exemption list in terms of Clause (1) of Section 66D of the Finance Act 1994 and as such no service tax could be levied.
The said judgment would equally apply to the present case. As such, I pass the following; ORDER i. The writ petition is allowed. NC: 2024:KHC-K:6876 ii. A certiorari is issued. The impugned order in No.DCCT(A)-1/VJP/GST/2023-24/B-700 dated 31.10.2023 at Annexure-E and order in DCCT(A)-1/VP/GST/2023-24/B-699 dated 31.10.2023 at Annexure-F issued by respondent No.4 are hereby quashed. iii. Needless to say, no further proceedings can be taken as regards the above. (SURAJ GOVINDARAJ) JUDGE
SR List No.: 1 Sl No.: 92
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.