Commercial training center solely liable for service tax on student fees; claim for Cenvat Credit dismissed.

The Tribunal held that the appellant, a commercial training center, is solely liable to pay service tax on the entire amount collected from students, rejecting the argument of fee sharing with another entity. The appellant's claim for availing Cenvat Credit was dismissed due to lack of evidence. The Tribunal found no merit in the appellant's argument against invoking the extended period for penalty waiver, directing the appellant to deposit the entire service tax amount within eight weeks, with waiver of the penalty amount upon deposit. Compliance and further orders were scheduled for a specified date.

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Issues: Liability to pay service tax on entire amount collected from students, entitlement to avail Cenvat Credit, invocation of extended period for penalty waiver

In this case, the appellant, running a commercial training center, contested the liability to pay service tax on the entire amount collected from students, arguing that it shared fees with another entity on a 75:25 basis. The Tribunal, after considering the facts, held that the appellant is solely liable to pay service tax on the entire amount collected, as the service is provided by the appellant and it collects the amount. The Tribunal rejected the appellant's argument regarding sharing fees and upheld the adjudication order. The appellant's contention of availing Cenvat Credit was also dismissed due to the absence of evidence showing that the payment to the other entity constituted an input service. The Tribunal emphasized that the payment as ongoing royalty was not related to the service provided by the appellant, as per the Commissioner's order.

Regarding the invocation of the extended period for penalty waiver, the Tribunal found no merit in the appellant's argument that suppression or misstatement did not justify invoking the extended period. The Tribunal concluded that there was no basis to grant a waiver of the pre-deposit requirement. Consequently, the appellant was directed to deposit the entire service tax amount within eight weeks, with the waiver of the penalty amount upon such deposit and recovery stayed. The case was scheduled for reporting compliance and further orders on a specified date.

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