𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗳𝗼𝗿 𝗖𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗦𝗵𝗮𝗿𝗶𝗻𝗴 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Service tax is not payable on the amount received by the appellant as it merely represents sharing of consideration towards services, and does not constitute taxable activity."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Shree Jain Vish Oshwal Club 𝗜𝘀𝘀𝘂𝗲: Whether the share of consideration received by the appellant from the contractor is liable to service tax under Business Auxiliary Service. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant, a registered trust, gave its property on temporary rent for income to support charitable activities. The income from shared consideration with a contractor (M/s Gandhi Associates) was disputed by the department.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that the activity does not amount to service provision by the appellant, as it was merely a sharing arrangement. The appellant had a bona fide belief that service tax was not applicable. The principle of revenue neutrality was upheld since any tax paid by the appellant could be claimed as CENVAT credit by the contractor. The Tribunal also found that extended limitation could not be invoked due to the absence of suppression or mala fide intent.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Shree Jain Vish Oshwal Club vs. C.S.T.-Service Tax, Ahmedabad 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 12 January 2023 📜 This ruling clarifies that mere sharing of consideration does not attract service tax liability, particularly under bona fide belief and revenue neutrality principles.