Vocational training exemption under service tax law applies to courses leading to employment or self-employment, defeating the demand.

Courses that culminate in certificates enabling employment or self-employment were treated as vocational training, so a commercial training or coaching centre qualified for exemption under Notification No. 9/2003-ST. Earlier High Court rulings on the amended notification and the meaning of vocational training were followed as binding precedent, and contrary Tribunal decisions were not accepted. On that basis, the service tax demand under the commercial training or coaching centre category could not be sustained. Other submissions, including limitation, were not separately examined because the matter was decided on merits.

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Issues: Whether the courses conducted by the appellant qualified for exemption as vocational training under Notification No. 9/2003-ST, and whether the service tax demand under the category of commercial training or coaching centre could be sustained.

Analysis: The relevant notification exempted a commercial training or coaching centre that provided vocational coaching or training imparting skills enabling the trainee to seek employment or undertake self-employment directly after such training. The courses conducted by the appellant were found to culminate in certificates used for employment or self-employment, and the issue was covered by earlier judicial pronouncements holding similar training to be vocational training. The contrary reliance on Tribunal decisions was not accepted because High Court rulings, having specifically considered the amended notification and the concept of vocational training, were binding and had to be followed. The Tribunal also declined to record findings on other submissions, including limitation, since the appeal was being disposed of on merits.

Conclusion: The appellant was entitled to the exemption and the service tax demand could not be sustained.

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