The CESTAT set aside the demands for differential service tax,...

The CESTAT set aside the demands for differential service tax, holding that the Department failed to discharge its burden of proof regarding taxability of the appellant's services. The appellant's vocational training services were exempt under Notification No. 24/2004-S.T. and Notification No. 23/2010-S.T. prior to 01.07.2012, and under Section 66D(l)(iii) and Mega Exemption Notification No. 25/2012-S.T. thereafter. The denial of CENVAT credit was held unsustainable due to valid Chartered Accountant certificates. Service tax demands on directors' remuneration and sale of books were quashed, as remuneration was taxable under Income Tax and sale of goods is not a service. Demands raised under extended limitation were set aside due to non-invocation of proviso to Section 73(1). Penalties were also waived, as no suppression of facts was established. The appeal was accordingly allowed in full.

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