𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗮𝗻𝗱 𝗖𝗵𝗮𝗿𝗶𝘁𝗮𝗯𝗹𝗲 𝗧𝗿𝘂𝘀𝘁 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗿𝘂𝗹𝗲𝗱: “Merely by charging fees or higher fees, an institution which otherwise belongs to a Charitable Trust cannot lose its identity as a non-commercial entity. There is no restriction under Section 11B to claim a refund by the Charitable Institute as a service recipient.”

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Gujarat Adani Institute of Medical Sciences 𝗜𝘀𝘀𝘂𝗲: The appellant, Gujarat Adani Institute of Medical Sciences, filed a refund claim under Section 11-B of the Central Excise Act, 1944 for service tax paid for the construction of their medical college building in Bhuj. A show cause notice was issued in 2011 and 2012 proposing the rejection of the refund claims.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that Gujarat Adani Institute of Medical Sciences, a charitable trust, is eligible to claim a refund of service tax paid for construction. Referencing the Allahabad High Court’s ruling, it affirmed that there is no restriction under Section 11B for charitable institutions to claim refunds. The appeal was allowed.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Gujarat Adani Institute of Medical Sciences vs. C.C.E. & S.T.-Rajkot 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 222 of 2012 – DB 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 22 June 2023 📜 This ruling confirms that charitable trusts are eligible to claim service tax refunds when the tax has been borne by them, even if they charge fees for their services.