COMMERCIAL TAXES OFFICER Vs. BANASTHALI VIDYAPITH

JUDGEMENT

(1.) Instant sales tax revision petition under Section 84 of the Rajasthan Value Added Tax Act, 2003 (for short, 'RVAT') has been filed by the Revenue assailing the order dt.01/12/2014 passed by the Rajasthan Tax Board, Ajmer (for short, 'Tax Board') in Appeal No.1528/2014/Tonk.

(2.) Brief facts are that the respondent is a renowned institution imparting education primarily to female students and is claimed to be not carrying on any trade, commerce or business but only carrying on the activity of imparting education which according to the respondent-institution is not at all in the nature of business, trade, commerce and is not into any activity of carrying on manufacturing or otherwise. The respondent-institution is registered under Section 12AA of the Income Tax Act (for short, 'IT Act') and it is a public society formed and registered on 16th March, 1951 under the provisions of Indian Societies Act, 1860 and also under Rajasthan Societies Act, 1958. It is claimed by the respondent-institution that it provides education to the girls and carries on similar activities for the welfare and over all development of girl students. It is claimed by the respondent-institution that it also has hostel facilities and is providing meals, books and other facilities to the students who reside in the hostel to get education in the University. The respondent has been treated as a "University" as per notification issued by the Education Department, Government of India.

(3.) A survey was carried in the premises of respondent-institution on 12/12/2012 by the Revenue Officials and during the course of survey, it was noticed that from the Assessment Years 2007-08 to 2012-13, the respondent-institution provided material namely; cement, iron and steel to the contractors for constructing its premises or/and maintenance of the properties being owned by it. Apart from the same, it sold prospectus to the prospective students who wanted to seek admission in the institution. It has been claimed by the Revenue that providing material namely; cement, iron and steel to the contractors and reducing the value of the same from the contract amount as also selling of the prospectus to the students is sale liable to RVAT under Entry 104 and despite of the respondent-institution (assessee) being a dealer, liable to get registered under RVAT, it did not got itself registered under the provisions of RVAT.