Hc Remains Notice Of 5 Crore Service Fee At Periyar University | Chennai News



CHENNAI: Madras High Court suspended an order issued by the GST and Excise Department demanding a 5 crore service fee from Periyar University, Salem, for granting affiliation to colleges under university.
Judge C Saravanan issued the university’s interim plea order challenging the claim.
Senior lawyer Isacc Mohanlal representing the university said that granting college affiliation would not fall within the scope of the service and that no service tax can be levied on this basis, especially where the he university is a state university.
The petitioner stated that the roles of the university, as set out in the Periyar University Act 1997, include developing a curriculum, prescribing training modules, regulating the admission of faculties, the prescription of norms and standards of infrastructure for the colleges to be affiliated and the granting of recognition and affiliation to the courses provided by the affiliated institutions. colleges.
“The authorities should have seen the services provided by an educational institution to its students, teachers and staff be exempted. The fact that the provision also includes professors and staff and not just students, clearly shows that the underlying purpose of the provision is not only to purely exempt the activity of teaching students, but to ‘include all kinds of services provided by an institution to its teachers and staff, apart from students,’ said the petitioner.


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