Madras High Court
Tvl.Seventh Day Adventist Higher ... vs State Tax Officer (Intelligence) / on 28 January, 2025
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
W.P.No.39563 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 28.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P. No.39563 of 2024
and
W.M.P.Nos.42851 and 42852 of 2024
Tvl.Seventh Day Adventist Higher Secondary School
Keelamangalam, Hosur 635 113.
Represented by its Authorized Signatory (Vinoth Kumar.M),
GSTIN:332400000188TMP ... Petitioner
Vs.
1.State Tax Officer (Intelligence) /
Commercial Tax Officer, Inspection Cell -3,
3/47, Sapthagiri Complex,
Thorapalli Agraharam, Hosur.
2.Deputy State Tax Officer,
Hosur (Intelligence).
3.Joint Commissioner (ST) (Intelligence),
Hosur. ... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of India
praying to issue a Writ of Certiorari to call for the records on the file of the
first respondent in Reference No:332400000188TMP/2021-22 dated
27.09.2024 and the consequential order under Section 74 and Summary of the
order dated 01.10.2024 in FORM GST DRC-07 having Reference
No:ZD331024000064D for the tax period 01.04.2021 to 31.03.2022, relating
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W.P.No.39563 of 2024
to Financial Year 2021-22 and quash the same as illegal and contrary to the
provisions of GST Act.
For Petitioner : Mr.Vikram Vijayaraghavan
for
M/S Subbaraya Aiyar Padmanabhan
For Respondents : Mr.C.Harsha Raj,
Additional Government Pleader.
ORDER
The present writ petition is filed challenging the impugned order dated 27.09.2024 on the limited ground that the petitioner's reply has not been considered and no reasons have been assigned for rejecting the objections of the petitioner, while denying the petitioner the benefit of exemption in terms of Entry 66 of Notification No.12/17 on the services stated to have been provided to it.
2. The petitioner is an Educational Institution / School providing education services to students and was established in 1972. The petitioner runs a school and provides / supplies uniforms including shoes, ties, belts, socks etc. It is submitted that, on the basis of the authorization issued by the Joint Commissioner (State Taxes) Intelligence, Division, Hosur, the petitioner's school was inspected on 22.07.2024. Based on the inspection https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/03/2025 06:43:32 pm ) 2/8 W.P.No.39563 of 2024 conducted, an intimation was issued under Section 74(5) of the Act in FORM GST DRC-01A- Part A dated 01.08.2024 for the tax period 01.04.2021 to 31.03.2022. In response, the petitioner submitted its reply on 08.08.2024 which reads as follows:
“Co-Curricular Activities:
The only service by the School is that of an educational institution providing the service of education to its students.
The CCA is directly related to imparting education to the students which are all must-needed components of school education. Reference may be drawn to the National Education Policy (“NEP”), 2020 and 2024 where the importance of co-curricular activities and extra-curricular activities are recognized.
As abundantly clear from NEP itself, CCA forms part and parcel of the education to students. Co-Curricular activities are intrinsically linked with the education services and are a part of the education services. Consequently, in view of the said Entry 66 mentioned above, there cannot be a separate and arbitrary GST levy as proposed by the authorities for the fee in respect of these co- curricular activities.
Supply of notebooks, ties, belts, etc:
Clearly, all these items are only related to imparting proper education to the student.
● Notebooks form the very basic substratum to receive the imparted education.
● Uniform attire involving ties, belts, shoes and socks enables a consistent and disciplined method of imparting education https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/03/2025 06:43:32 pm ) 3/8 W.P.No.39563 of 2024 without discrimination based on race, creed, caste or religion as enshrined in our Constitution.
These items would have no meaning or relevance or requirement if not in use for the education imparted by the school. They do not have a useful existence in this context separate from the educational services of the school but are clearly dependent and intrinsically linked with the principal service of education by the school. Therefore these items are also part and parcel of the education services rendered by the school and are not liable for GST.
Composite Supply:
without prejudice to the above, if the main service of the School is education, then this main service along with the related the principal services/supplies of CCA and items such as notebooks, ties, uniforms etc all together constitute a composite supply with supply of services being the educational services imparted by the School to its students. Viewed in this manner also, the CCA and the supply of notebooks, ties, etc do not attract levy of GST since the principal service of education itself does not attract GST.
Neither CCA nor supply of notebooks, uniforms etc will attract GST as per Entry 66 of Notification No. 12 CTR dated 28th June 2017. Entry 66 clearly reads "Services provided by an educational institution to its students", it does not say specifically restrict the services to say tuition services rather encompasses all services rendered to its students by the educational institution. In short, once an institution qualifies as an educational institution then any service to its students is exempt. One cannot cull out or assume a separate supply of goods or separate services, when such goods and services are clearly part and parcel of the Petitioner's https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/03/2025 06:43:32 pm ) 4/8 W.P.No.39563 of 2024 educational institution's principal activity of imparting education to its students.
At any rate these would amount to a composite supply which is naturally bundled with the principal supply of education which is exempt from GST".
This was followed by a notice in DRC-01 dated 12.08.2024.
3. It is the case of the petitioner that the supply of uniforms, notebooks and other necessary material for co-curricular activities are all integral to the service of imparting education and as such, would be covered under Entry 66 of Notification No.12/17. The relevant entry is extracted under:
“Service provided-
(a) by an educational institution to its students, faculty and staff;
(b) to an educational institution by way of,
(i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) Security or cleaning or housekeeping services performed in such educational institution; (iv) A service relating to admission to, or conduct of examination by, such institution; up to higher secondary:
Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent NIL.” The respondent authority has erroneously referred to sub-clause (b) to Entry https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/03/2025 06:43:32 pm ) 5/8 W.P.No.39563 of 2024 66 of Notification No.12/17, which pertains to services provided to an Educational Institution. This is a clear misdirection inasmuch as the question that arises for consideration in the present case is whether services provided by the petitioner viz., supply of uniform, notebooks and other materials in relation to co-curricular activities including sports, to an educational institution is covered under sub-clause (a) to the said notification as constituting services provided by an Educational Institution to its students, faculty and staff. The impugned order does not deal with the above objection put forth by the petitioner.
4. On this being pointed out, the learned counsel for the respondent would submit that they would reconsider and pass orders afresh.
5. In view thereof, the impugned order dated 27.09.2024 is set aside. It is open to the petitioner to file any additional material / reply, if required, treating the impugned order as a Show Cause Notice. If any such material / reply is filed, the same shall be considered and orders shall be passed in accordance with law after affording the petitioner a reasonable opportunity of hearing.
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6. Accordingly, the writ petition stands disposed of. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.
28.01.2025 Speaking (or) Non Speaking Order Index : Yes/ No Neutral Citation: Yes/No shk To:
1.State Tax Officer (Intelligence) / Commercial Tax Officer, Inspection Cell -3, 3/47, Sapthagiri Complex, Thorapalli Agraharam, Hosur.
2.Deputy State Tax Officer, Hosur (Intelligence).
3.Joint Commissioner (ST) (Intelligence), Hosur.
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