CESTAT overturns service tax on educational services citing discrimination & constitutional violation. Delay condoned due to illness.

The Appellate Tribunal CESTAT, CHENNAI, allowed the appeal based on the precedent set by a previous decision, setting aside the impugned order that levied service tax on training and coaching services provided by an educational institution. The Tribunal condoned a delay of 92 days in preferring the appeal due to the appellant's Director's illness and disposed of the appeal as the issue was already addressed in the previous decision, which held the levy of service tax in such cases as discriminatory and violative of the Constitution of India.

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Issues: Delay in preferring appeal, waiver of predeposit, levy of service tax on training and coaching services provided by an educational institution.

The judgment by the Appellate Tribunal CESTAT, CHENNAI, involved the condonation of a delay of 92 days in preferring the appeal due to the illness of the appellant's Director, supported by a medical certificate. The Tribunal proceeded to consider the application for waiver of predeposit but decided to dispose of the appeal itself as the issue was already covered by a previous decision in the assessee's case. The Tribunal referred to a case where it was held that the levy of service tax on training and coaching services provided by the appellant's institution, leading to the issuance of certificates recognized by law, was not justified. This decision was based on the principle that such a levy was discriminatory and violative of Article 14 of the Constitution of India, as it indirectly burdened students. Consequently, the impugned order was set aside, and the appeal was allowed based on the precedent set by the previous decision. The judgment was pronounced in open court by the Tribunal.

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