{"id":3203,"date":"2025-03-25T12:27:59","date_gmt":"2025-03-25T06:57:59","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=3203"},"modified":"2025-03-25T12:27:59","modified_gmt":"2025-03-25T06:57:59","slug":"construction-services-to-trusts-under-section-12a-12aa-of-income-tax-act-qualify-as-religious-use-and-are-exempt-from-service-tax-cestat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/construction-services-to-trusts-under-section-12a-12aa-of-income-tax-act-qualify-as-religious-use-and-are-exempt-from-service-tax-cestat","title":{"rendered":"Construction Services to Trusts Under Section 12A\/12AA of Income Tax Act Qualify as Religious Use and Are Exempt From Service Tax..."},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000390459\/construction-services-to-trusts-under-section-12a12aa-of-income-tax-act-qualify-as-religious-use-and-are-exempt-from-service-tax-cestat\">Sheetal Prasad Versus Commissioner of Central Excise (2025) 28 Centax 226 (Tri.-All)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Shri P.K. Choudhary<\/strong>, Member (J)<\/li>\n<li><strong>Shri Manu Kulshreshtha<\/strong>, Adv., for the Appellant.<\/li>\n<li><strong>Shri Santosh Kumar<\/strong>, Authorized Representative, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The assessee, a construction service provider, rendered construction services to educational and charitable institutions registered under Section 12A\/12AA of the Income Tax Act. The Department initiated proceedings demanding service tax of \u20b933,67,300 for the financial year 2016-17, relying on income tax records to substantiate the claim. The assessee contended exemption under Sl. No. 13 of Notification No. 25\/2012-ST, stating that the services were provided for charitable purposes predominantly aligned with religious use.<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>The Hon\u2019ble CESTAT held that &#8220;religious use&#8221; under Notification No. 25\/2012-ST includes education and medical aid, being instrumental in alleviating human suffering. Since the construction services were provided for buildings owned by institutions registered under Section 12A\/12AA of the Income Tax Act and used predominantly for such purposes, they qualified for exemption. Accordingly, the service tax demand and penalty under Section 78 of the Finance Act, 1994, were set aside, and the appeal was allowed with consequential relief.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Sheetal Prasad Versus Commissioner of Central Excise (2025) 28 Centax&hellip;<\/p>\n","protected":false},"author":5,"featured_media":3205,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-3203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Construction Services to Trusts Under Section 12A\/12AA of Income Tax Act Qualify as Religious Use and Are Exempt From Service Tax | 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