TaxTMI 
TaxTMI 
2009 (12) TMI 151
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....y paid any service tax to the account of the Central Government as was required under the provisions of Finance Act, 1994. Any training or coaching provided by a commercial training or coaching centre has been classified as taxable service with effect from 1-7-2003 under section 65(105)(zzc) of the Finance Act, 1994 as amended. The Department also noticed that BIFT is an institution providing training or coaching for imparting skill or knowledge or lesson on international business for a consideration on commercial basis and the certificates issued by them after completion of course are not recognized by law and as such the said services provided by them fall within the definition of section 65(27) of the Act. The Department alleged that the Appellants had suppressed the fact of providing taxable services with an intention to evade payment of service tax and not obtained registration for payment of service tax. 2.2 Coming to such conclusion, a show-cause notice was issued to the respondent proposing for demand of service tax, imposition of penalty and demand of interest. The said show-cause notice was adjudicated by the Addl. Commissioner, Hyderabad-II Commissionerate vide his Or....
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.... subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes but does not include pre-school coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognised by law for time being in force". In the present case, the words commercial coaching or training institute and training or coaching plays a vital role. To elaborate this, the meaning of the word "Coach" as per the Concise Oxford English Dictionary 11th edition "a tutor who gives private or specialised teaching". As per the Chambers reference on line defines "coaching" as "train in sports etc., to teach privately". From the definitions, the distinct character of "coaching" appears to be private character of teaching as opposed to the instruction imparted by the public authorities. What distinguishes "coaching" is the private character of teaching and not the purpose for which it is done. The Concise Oxford Dictionary defines 'teach' and 'private' respectively as follows : "imparting knowledge to or instruct (someone) in how to do something, especially in a school or as par....
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....ount. (c) The Commissioner (Appeals) has also held that the assessee is not covered under the commercial concern by deducing the same from the memorandum of understanding read with the registration under other statutory organisation as not-for- profit organisation. It is clear from the above discussed facts that the assessee is collecting huge amounts as fees from their students and imparting training in the field of management and international business and not offering any degree recognised by any statutory body. (d) The Commissioner (Appeals) held that on ground of limitation the appellant's contention is correct and found merits. This argument is not tenable because the commercial training or coaching has come into the service tax net with effect from 1-7-2003. The assessee has neither applied for registration nor contacted the department about their activities and liability to pay the service tax. It was when department started the investigation on their own, the entire issue has come to light. This shows that the assessee have suppressed the facts with a wilful intention to evade Service Tax payable by them. Hence, the extended period of time period is clearly applicabl....
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.... which has been raised by the Revenue in the grounds of appeal is that the respondent is a commercial institute, as they are collecting high fees from the students and the institute is run on a commercial basis as seen from the memorandum of understanding and the course is not offered free of cost. In our considered opinion, an identical issue was decided by the Co-ordinate Bench of this Tribunal in the case of Great Lakes Institute of Management Ltd. (supra) wherein the Bench held as under:- "6. We find that the appellants are recognized as a charitable organization under the Income-tax Act, 1961. Though the appellants earned some surplus income from the activity of imparting education, we hold that activity they are engaged in is predominantly one of public utility benefitting eligible youth thereby sub-serving a much larger interest of providing useful talents to the industry and ultimately the economy of the country. No individual is gaining any monetary benefit out of the activity of GLIM. The appellants are housed in a small facility in Saidapet and propose to relocate to spacious premises and own building to be constructed. They have already allocated most of the savings ....