Page 153 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : ALL INDIA DISASTER MITIGATION INSTITUTE 111
deity in temple is not a dealer doing business and therefore it is not
liable to tax on the purchases of goods or distribution of prasad to
devotees.
(iv) Gowtham Residential Junior College v. Commercial Tax Officer - 19 VST
305 (A.P.) : The petitioners were private educational institutions and
ran hostels providing boarding and lodging facilities to the inmates
of the educational institutions. They purchased food stuff from un-
registered dealers and supplied it to the students as food. Hon’ble
Andhra Pradesh High Court held that the petitioners were not en-
gaged in business and therefore they were not liable to pay tax on
purchase of food stuff.
(v) Scholars Home Senior Secondary School v. State of Uttarakhand and An-
other - 42 VST 530 (Uttara.) : The petitioner was a school. Food was
given by the petitioner to students residing in a hostel. It was held
by Hon’ble Uttarakhand High Court that the primary and dominant
activity of the petitioner was to impart education. This main activity
did not amount to commercial activity or business. Supply of food-
stuff to residential students was an incidental activity to the main
activity and since the main activity was not business the incidental
activity was also not business. Hon’ble High Court concluded that
the petitioner was not covered within the meaning of the word
“dealer” as defined in the Uttarakhand Value Added Tax Act, 2005.
(vi) Sri Velur Devsthanam Vaitheeswaran Koil Dharmapuram Adhinam v.
State of Tamil Nadu - 53 VST 235 (Mad.) : The Petitioner was consti-
tuted for maintenance of the main temple, shrines and minor tem-
ples attached thereto and charities and endowments thereof. Orna-
ments were donated by devotees to the temple which were sold off.
It was held that the petitioner was not carrying trade, commerce,
etc. The conduct of sale of offerings was incidental to the object
which was totally religious. Hence it was not a dealer liable to tax
under the Tamil Nadu General Sales Tax Act, 1959.
(vii) Sulabh International Social Service Organization v. State of Tamil Nadu -
53 VST 248 (Mad.) : A charitable social service organization entrust-
ed with the work of construction of Sulabh Sauchalaya was held to
be not a dealer.
(viii) Mahatma Gandhi Kashi Vidyapeeth v. State of Uttar Pradesh - 64 VST
271 (All.) : A university which is imparting education was held to be
not a dealer under the Uttar Pradesh Value Added Tax Act, 2008 as
it did not have motive to do business. It was observed that motive
on the part of the university to indulge in any business activity was
totally lacking and statutorily impossible. It was a matter of conven-
ience for students and university to get admission forms printed for
a price. Such activity did not constitute business and therefore the
university was not a dealer liable to pay tax.
Alternately services by way of charitable activities/services to Government ex-
empt from tax and hence no registration is required :
19. Without prejudice to the above and in the alternative it is respect-
fully submitted that even if the activities of the applicant qualify as supply trans-
actions, they are services by way of charitable activities which are fully exempt
GST LAW TIMES  7th May 2020  153