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2025 Supreme(Online)(Del) 7168
IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, Shail Jain, JJ
COUNCIL FOR THE INDIAN SCHOOL CERTIFICATE EXAMINATIONS (CISCE) THROUGH ITS CHIEF EXECUTIVE AND SECRETARY DR JOSEPH EMMAUEL – Appellant
Versus
UNION OF INDIA, MINISTRY OF FINANCE, THROUGH ITS SECRETARY – Respondent
W.P.(C) 14532/2025
For the Appellants/Petitioners: Mr. M.P. Rastogi, Mr. Kaushik, Mr. Ram Naresh, Mr. Shivam Malik, Mr. Shobhit Jaiswal
For the Respondents: Mr. Arun Khatri, Adv., CBIC
The validity of GST circulars concerning educational institutions' services is contentious, as prior judgments support exemptions for affiliation services.
Headnote:Statute Analysis: The petition challenges the circulars issued by the Ministry of Finance regarding GST exemptions for educational institutions, particularly concerning affiliation services. Facts of the Case: The petitioner asserts its educational services are exempt from GST under the Mega Exemption Notification No. 12/2017.
Findings of Court:
The court found the circulars invalid as they contravened the statutory provisions of the GST legislation.
Issues: The court framed issues regarding the legality of the circulars' applicability to educational institutions.
Ratio Decidendi: The court reasoned that the affiliation services should be exempt as per the existing legal framework and prior judgments.
Result: The evidence suggested that the impugned circulars were contrary to the notification, which protects educational services from GST.
| Table of Content |
|---|
| 1. tax exemption for educational services under gst. (Para 2 , 3 , 4 , 5) |
| 2. impact of circulars on affiliation services and exemption context. (Para 6 , 7 , 8 , 9) |
| 3. judicial precedent supports exemption for affiliation fees. (Para 10 , 11) |
| 4. court's affirmation of prior judgments strikes down circulars. (Para 12 , 13 , 15) |
| 5. next steps outlined for further proceedings. (Para 14) |
O R D E R
% 06.10.2025
1. This hearing has been done through hybrid mode.
2. The present petition has been filed by the Petitioner- Council for the Indian School Certificate Examinations (hereinafter, ‘CISCE’) under Article 226 and 227 of the Constitution of India, inter alia, assailing the vires of Circular No. 234/28/2024-GST, dated 11th October 2024 issued by Tax Research Unit-II of Ministry of Finance, Department of Revenue (hereinafter, ‘impugned circular dated 11th October, 2024’) and Circular No.151/07/2021- GST, dated 17th June 2021 issued by Ministry of Finance, Department of Revenue (hereinafter, ‘impugned circular dated 17th June, 2021’).
3. The Petitioner gives affiliation to what is colloquially known as ICSE schools. Since its inception, the Petitioner has been dedicated to educational objectives, including imparting of education through its affiliated schools and W.P.(C)14532/2025 Page1of7 conducting school examinations.
4. ThecaseofthePetitioneristhat,theservicesprovidedbyitareexempted from payment of Goods and Services Tax (hereinafter, ‘GST’) under tariff heading 9992 of the Mega Exemption Notification No. 12/2017 dated 28th June, 2017 issued by Ministry of Finance, Department of Revenue (hereinafter ‘Mega Exemption Notification’)
5. The relevant tariff heading of the Mega exemption notification reads as under:
W.P.(C)14532/2025 Page2of7 secondaryschool or equivalent.
Sl. No.
Chapter, Section, Heading, Group or Service Code (Tariff)
Description of Services
Rate (per cent.)
Condition
66
Heading 9992
Services 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) services relating to admission to, or conduct of examination by, such institution; upto 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
Nil
Nil
6. Vide the impugned Circulars dated 17th June, 2021 and 11th October, 2024 the exemption given to such affiliation bodies has now been taken away by holding that the same is taxable.
7. Mr. M.P. Rastogi, ld. Counsel for the Petitioner, relies upon the following two decisions:
● Goa University vs. Joint Commissioner of CGST and Ors.
(2025:BHC-GOA:721-DB)
● Bengaluru North University vs. Joint Commissioner of CGST and Ors. (2025:KHC:16686)
8. The Court has perused the aforesaid decisions. It is seen that in the decision of Goa University vs. Joint Commissioner of CGST and Ors. (Supra), the Bombay High Court has specifically considered the Mega Exemption Notification and has held that the impugned Circular dated 17th June, 2021 and impugned Circular dated 11th October, 2024 are contrary to the plain language of the aforesaid Notification. The relevant portion of the said judgment reads as under:
“49. The Impugned Show Cause Notice relies on the clarifications issued by the Respondent No.2 vide Circular dated 17/06/2021. The Circular while clarifying the exemptions available to the National Board of Examination, in paragraph 4(iii) of the circular states that GST at the rate of 18% applies to other services provided by such Boards, namely of providing accreditation to an institution. Based on the recommendations of the 54th GST
