Case Note & Summary
The Goa University filed a writ petition under Article 226 of the Constitution of India before the High Court of Bombay at Goa challenging a show cause notice dated 05.08.2024 issued by the Joint Commissioner of Central Goods and Service Tax (CGST), Goa, proposing to demand GST on its educational activities, primarily ailiation fees collected from colleges. The University also challenged the subsequent order-in-original dated 28.01.2025 passed under Section 74 of the Central Goods and Services Tax Act, 2017, confirming the demand, as well as certain circulars and a press note issued by the Central Board of Indirect Taxes and Customs and the GST Council. The University, established under the Goa University Act, 1984, contended that its activities are purely educational and statutory in nature, not constituting 'business' as defined under Section 2(17) of the CGST Act, and therefore are not a 'supply of services' exigible to GST. It relied on the exemption under Entry 66 of Notification No. 12/2017-CT (R) and argued that the impugned circulars had incorrectly narrowed the exemption. Earlier, a service tax proceeding on the same issue had been dropped in 2019. The respondents argued that the writ petition was not maintainable in view of the alternative remedy of appeal, and that education services are expressly made taxable under the GST framework. The Court, while noting the availability of an appellate remedy, stated that it would examine the matter on the threshold issue of absence of jurisdictional facts to issue the show cause notice; if it found in favour of the revenue, the petitioner would have to invoke the statutory appeal. The judgment excerpt provided does not contain the final operative decision of the Court.
Headnote
A) Goods and Services Tax - Taxable Supply - Definition of Business - Central Goods and Services Tax Act, 2017, Sections 2(17), 7 - Goa University, a statutory university established under the Goa University Act, 1984, challenged the GST demand on ailiation fees contending that its educational and related activities are not 'business' as defined, i.e., trade, commerce, manufacture, profession, vocation, or adventure, and hence not a 'supply' chargeable to tax (Paras 10-11).
B) Goods and Services Tax - Exemption Notification - Entry 66 of Notification No. 12/2017-CT (R) dated 28.06.2017 - The University claimed that its services are exempt from GST under the said entry, and argued that the impugned circulars (dated 17.02.2021 and 11.10.2021) illegally restrict the scope of the exemption and are ultra vires the Act; the tax demand based on these circulars was contended to be without authority of law (Paras 10-11).
C) Writ Jurisdiction - Maintainability - Alternative Remedy - Constitution of India, Article 226 - The Court examined whether the writ petition should be entertained when a statutory remedy of appeal is available against the order-in-original passed during pendency; the primary issue was whether jurisdictional facts existed for issuing the show cause notice, which would determine the need to relegate the petitioner to the appellate forum (Para 2).
Issue of Consideration
Whether the Goa University's ailiation and educational activities constitute 'business' and 'taxable supply' under the Central Goods and Services Tax Act, 2017; validity of departmental circulars imposing GST on such activities; maintainability of the writ petition in view of the alternative remedy of appeal.
Final Decision
Decision not clearly stated
Law Points
- Legal points not extracted
- Definition of business under GST
- taxability of educational activities
- validity of circulars restricting exemption
- maintainability of writ despite alternative remedy
- absence of jurisdictional facts to issue show cause notice
Case Details
2025 LawText (BOM) (04) 169
WRIT PETITION NO.723/2024
M. S. Karnik, Nivedita P. Mehta
Citation not available, 2025:BHC-GOA:721-DB
Mr Raghuraman, Mr Gauravvardhan Nadkarni, Mr Jay Mathew, Mr B. Murthy, Mr Raghavendra C. R., Ms Asha Desai
Goa University, through its Registrar, Mr. Vishnu Sakharam Nadkarni
1. Joint Commissioner of Central Goods and Service Tax, Goa Commissionerate; 2. Central Board of Indirect Taxes & Customs; 3. Goods and Services Tax Council
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Nature of Litigation
Writ petition under Article 226 challenging show cause notice and order-in-original demanding GST on educational activities including ailiation fees.
Remedy Sought
Petitioner Goa University sought quashing of show cause notice dated 05.08.2024, order-in-original dated 28.01.2025, and certain circulars, and a declaration that its activities are not subject to GST.
Filing Reason
The University received a show cause notice proposing demand of GST on ailiation services and related activities; after the order-in-original was passed during pendency, it was added to the prayer.
Previous Decisions
Earlier service tax show cause notice dated 28.03.2018 was dropped on 10.04.2019. An intimation in form DRC-01A was issued on 27.05.2024 for period 2017-2024. The impugned show cause notice was issued on 05.08.2024, and order-in-original was passed on 28.01.2025.
Issues
Whether the activities of the University, including grant of ailiation and collection of ailiation fees, constitute 'business' under Section 2(17) of the CGST Act and 'supply of services' under Section 7.
Whether the services are exempt under Entry 66 of Notification No. 12/2017-CT (R).
Whether the impugned circulars and press note are ultra vires the Act and Constitution.
Whether the writ petition is maintainable in view of alternative remedy of appeal against the order-in-original.
Submissions/Arguments
Petitioner argued that educational activities are not business, statutory functions are not supply, exemption applies; circulars illegally restrict the exemption; earlier proceedings were dropped; demand is without jurisdiction.
Respondents argued that the petition is not maintainable due to alternative remedy; education services are taxable under GST law; notification specifically includes education; circulars are valid.
Ratio Decidendi
Ratio not explicitly mentioned
Judgment Excerpts
This petition by the Goa University under Article 226 of the Constitution of India challenges a show cause notice dated 05.08.2024 issued by respondent no.1 – Joint Commissioner of Central Goods and Service Tax (CGST), Goa Commissionerate, proposing to demand GST on the educational activities of the petitioner University.
If we hold against the petitioner on this aspect, then obviously the petitioner has to avail of the remedy provided under the Central Goods and Service Tax Act, 2017
Procedural History
On 28.03.2018, a service tax show cause notice was issued to the University on ailiation fee, but proceedings were dropped on 10.04.2019. In 2024, the CGST Superintendent sought details via email on 09.01.2024; the University replied on 10.01.2024 that no GST was charged. Further correspondence followed. On 27.05.2024, an intimation in Form DRC-01A was issued under Section 74(5) demanding Rs.1,90,30,494 for the period 2017-2024. On 05.08.2024, the impugned show cause notice under Section 74 demanded Rs.4,83,59,747. During pendency of the writ petition, the adjudicating authority passed the order-in-original on 28.01.2025, which was then added to the challenge.
Acts & Sections
- Constitution of India: Article 226
- Goa University Act, 1984:
- Central Goods and Services Tax Act, 2017: 2(17), 74, 74(5), 2(53), 2(36), 7, 8, 15, 22, Schedule II clause 5, Notification No. 12/2017-CT (R) Entry 66
- Goa Goods and Services Tax Act, 2017:
