𝗖𝗘𝗦𝗧𝗔𝗧 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗧𝗮𝘅𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗛𝗼𝘀𝘁𝗲𝗹 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗔𝗻𝗱 𝗘𝗱𝘂𝗰𝗮𝘁𝗶𝗼𝗻 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Hostel and education services provided by a boarding school are naturally bundled, with education services being the predominant element and falling under the negative list, hence not taxable."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Mody Education Foundation 𝗜𝘀𝘀𝘂𝗲: Whether hostel services are taxable as auxiliary education services and if service tax is payable on other services? 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant, a boarding school, charged hostel fees alongside tuition fees. It also received rental income, provided transportation services, and availed goods transport agency (GTA) services.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that hostel and education services are naturally bundled, with education services providing the essential character. As education services fall under the negative list per Section 66D of the Finance Act, they are not taxable. The appeal was allowed, and no tax was levied on hostel services.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Mody Education Foundation vs. Commissioner of Central Excise, Jodhpur 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗣𝗣𝗘𝗔𝗟 𝗡𝗢. 50636 OF 2017 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 15 May 2023 📜 This ruling confirms that bundled hostel and education services in a boarding school context are non-taxable as education services dominate the bundle and fall under the negative list.