Specialised training classification dispute: prima facie waiver of pre-deposit declined pending detailed examination of course material.

The Tribunal held that the material then available did not establish a prima facie case that the specialised training was computer training alone for purposes of claiming exemption under Notification No. 9/2003. It noted the departmental case that the courses involved biotechnology, pharmacy and other interdisciplinary subjects, and found that the classification dispute required detailed examination of the training literature and supporting material. Complete waiver of pre-deposit was therefore declined, a partial pre-deposit was directed, and recovery of the balance service tax and penalty was stayed on compliance.

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Issues: Whether the appellants made out a prima facie case for complete waiver of pre-deposit in a dispute concerning classification of specialized software training as commercial training or coaching services.

Analysis: The appellants claimed that the training activity fell within computer training and that the benefit of Notification No. 9/2003 was available. The Tribunal noted the departmental stand that the courses were specialized training in biotechnology, pharmacy and related interdisciplinary fields and, on the material then available, it could not be said prima facie that the activity was computer training alone. The matter was found to require detailed examination of the literature and other material produced by the appellants.

Conclusion: Complete waiver was declined and the appellants were directed to pre-deposit Rs. 1,00,000. On such deposit, recovery of the balance service tax and penalty was stayed.

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