2026-VIL-962-CESTAT-BLR-ST
  1. Home
  2. 2026-VIL-962-CESTAT-BLR-ST

SERVICE TAX CESTAT Cases

Service Tax - Liability on renting of immovable property by a religious body - Applicability of exemption notification – Appellant is a religious body registered as a charitable trust rented out commercial shopping complexes situated within its premises to tenants for business purposes and received rental income on the basis of consideration - Whether a religious body engaged in renting out commercial shopping complexes within its premises is eligible for exemption from service tax under Notification No. 25/2012-ST dated 20.06.2012, specifically under clause 4 (charitable activities) or clause 5(a) (renting of precincts of a religious place meant for general public) – HELD - Under clause 4, mere registration as a charitable trust under Section 12AA of the Income Tax Act is insufficient; the entity must also be engaged in specific charitable activities as defined in the notification. No evidence was placed on record demonstrating such engagement. Under clause 5(a), the commercial shops rented to private persons for conducting their business cannot be said to be "meant for general public" as the service is rendered for the private business use of individual tenants, not for public use by the religious body. However, prior to 01.07.2012, the appellant was not liable to service tax in view of the provisions existing at that point of time – Further, the appellant acted under bona fide belief in continuing to avail the exemption and that the transactions were reflected in specified records. Therefore, while the demand for service tax post 01.07.2012 is upheld, the demand is limited to the normal period and all penalties are set aside – The appeal is partly allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST Recent Updates: GSTAT, EWB...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?