AIMS Hospital Case Study

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FACTS OF THE CASE The brief facts of the case are: The petitioner, M/s. KVR Construction (Assessee) is a construction/development organization rendering services/administrations under classification of "Development of Residential Complex Service" and are paying the Service Tax as per Finance Act, 1994. They are construct some buildings for Shri Adichunchanagiri Shikshana Seva Trust by virtue of an agreement dated 7-12-2004: (a) Medical college (b) AIMS Hospital (c) SJBIT Engineering college (d) SJBIT Engineering Boys Hostel The case pertains to Claim for refund of service tax paid by the Assessee who found that he was not accountable to pay tax in light of Circular No. 80/10/2004, dated 17-9-2004 since it constructed civil structures which were put to use for charitable, health, sanitation and benevolent purpose, and not for purpose of profit. The amount paid by assessee was to be treated as deposit in hands of Government.…show more content…
11B of Central Excise Act as limitation period of 1 year is given in that section. On an appeal, the single judge bench of Karnataka High Court has held that the sum paid by assessee was a “deposit” and not a duty and hence there was no necessity for assessee to have through a assert invoking section 11B. The claim for refund was thus allowed. Against this order, CCE, Banglore filled writ petition against the order of single judge of Karnataka High court in Division bench of same high

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