Retrospective expansion of commercial training service scope led to remand for fresh adjudication and reconsideration of demand.

The retrospective amendment to clause (zzc) of section 65(105) widened the scope of commercial training or coaching service to include centres or institutes run as a trust, society or similar organisation, with or without profit motive. Because that amendment could affect the basis of the demand for the period July 2003 to 31 March 2007, the matter required fresh examination by the adjudicating authority. The impugned order was therefore set aside and the disputes were remitted for reconsideration after granting the assessees a reasonable opportunity of hearing. Questions such as limitation were left open for decision on remand.

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Issues: Whether the retrospective amendment to clause (zzc) of section 65(105) bearing on commercial training or coaching service required reconsideration of the demand and fresh adjudication by the authority below.

Analysis: The demand had been confirmed for the period July 2003 to 31 March 2007 on the premise that the assessees were rendering commercial training or coaching services. The retrospective amendment introduced in the 2010 Budget expanded the scope of clause (zzc) to cover centres or institutes, whether run as a trust, society or similar organisation, with or without profit motive. In view of the legal effect and implication of that amendment, the matter required examination by the adjudicating authority. The remaining questions, including limitation, were left open for reconsideration on remand.

Conclusion: The impugned order was set aside and the matters were remitted for fresh decision after giving the assessees a reasonable opportunity of hearing.

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