TaxTMI 
TaxTMI 
2009 (5) TMI 289
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....ering ERP (SAP), IVL software products, quality software engineering and personality development topics to their prospective employees and collect amounts running into lakhs of rupees as "joining fee" from recruits who gain opportunity for onsite implementation experience and programming skills in SAP related development. IVL being a well established brand in software market, the SAP training programme conducted by the appellant by collecting amount from the trainees as joining fee, though it was essentially a training fee, attracts a large number of job seekers and the activity undertaken by the appellant could be rightly classified under the category of 'Commercial Training or Coaching Service'. No service tax was being paid on the servic....
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....eposit an amount of Rs. 1,50,000/- while joining the company and the said amount is reimbursed over a period of time at Rs. 5,000/- per month. It is his submission that the employees being in their own recruitment, the training programme conducted by them under SAP cannot be considered as 'Commercial Training or Coaching'. He would submit that the issue is now squarely covered by the decision of this Bench in the case of Institute of Chartered Financial Analysis of India (ICFAI) and Others v. CC & CE, Hyderabad-II as reported in 2009 (14) S.T.R. 220 (Tribunal) = 2009 (91) RLT 421. 4. The learned DR on the other hand would submit that the appellant herein is collecting the amount as fee from the prospective persons for inducting them into....
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....y clear that services provided or to be provided by commercial training or coaching centre is in relation to commercial training or coaching. 5.1 On perusal of the appointment letter given by the appellant to few of the people, which reads as under: It can be noticed from the first paragraph of the above letter that the appellant is offering the person an employment with the company. The clauses below are the terms and conditions for employment of the company. The payment clause of this as reproduced above would indicate that it is nothing but a kind of a bond taken from the employee. The learned DR's contention that Paragraph 5 of the appointment letter indicates that they have given training is also misconstrued and misdirected inas....
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....y dealt with in the decision of the Chennai Tribunal in the case of M/s. Great Lakes Institute of Management Ltd. v. CST, Chennai (cited supra). We are reproducing the gist of the decision to understand the import of the meaning 'commercial'. Service Tax - Commercial coaching or training: A commercial concern is run with the sole object of making profit. In the case of the appellants, no individual gains any profit by its operations. The MOA clearly spells out that no income earned by the company shall be paid byway of dividend, bonus or otherwise by way of profit to any member of the company or to anybody else through the members. If any surplus remains when the company is wound up, it shall be transferred to another institution run for....