TaxTMI 
TaxTMI 
2009 (11) TMI 544
X X X X Extracts X X X X
X X X X Extracts X X X X
....oaching service. In this connection, the Deputy Commissioner, Service Tax issued a letter dated30-9-2005to the appellants to obtain a Service Tax Registration for providing taxable services under the category of Commercial Training and Coaching and calling for details of fees collected for providing such taxable services. The respondents informed that Insurance Regulatory and Development Authority (IRDA) was formed under the Govt. of India Act, 1999 and the IRDA is the controlling and governing body of all the insurance companies ofIndia. This is an independent body like Reserve Bank ofIndia, created by the Act of Parliament and IIRM was created as a joint venture of IRDA and Govt. of Andhra Pradesh. The respondents also claimed that there is not a Commercial Training or Coaching Centre as their institution has obtained registration under Section 12AA of the Income Tax Act and its income is exempt under Section 11 of the IT Act. Therefore, it appeared to the Department that :- (a) the respondents were engaged in conducting Diploma course in Insurance leading to award of certificate PG Diploma course in Insurance (IPGDI), which is not recognized by law for....
X X X X Extracts X X X X
X X X X Extracts X X X X
....de before him, set aside the impugned order on the ground that the assessee is not a profit making company and is not a commercial concern. Aggrieved by such an order, Revenue is in appeal before us. 3. The learned SDR would submit that the learned Commissioner (Appeals) has erred in setting aside the impugned Order-in-Original before him. It is the submission that Commercial Training or Coaching Service has been defined under Section 65(27) of the Finance Act, 1994, which included three components : (a) it applies to institutions or establishments (b) they are providing commercial training or coaching (c) it does not include institutes issuing certificate/educational qualification recognized by law 3.1 It is the submission that the definition covers any institute or establishment and the word "Commercial Concern" has not been used here and hence, the contention of the respondent that they are a non-commercial body or the like is not at all the issue that is to be decided. It is the submission that it needs to be appreciated that as respondent is an institute/establishment which is meeting t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pment Authority of India (IRDA), a regulatory body constituted by Central Government, under an Act of Parliament and Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC), a fully owned undertaking of Government of Andhra Pradesh with an object of "promoting and regulating professional organizations connected with insurance and re-insurance business". It is the submission that the main object of IIRM i.e. the respondent, is to run an education academy and to organize training courses and special programs to impart education, training in insurance, risk management and other financial areas to Indian/Foreign national involved in such business. He would also submit that respondent is a company registered under Section 25 of the Companies Act and hence, it is a non-profit organization. It is the submission that the Tribunal in an identical issue has considered all the points raised by the learned JDR and has held in favour of the assessee in the following cases : (i) InstituteofBankingPersonnel Selection v. CST - 2007 (8) S.T.R. 579 (Tribunal-Mum.) (ii) AdministrativeStaffCollegeofIndiav. CCE,Hyderabad- 2009 (14) S.T.R. 34....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nancial services and all related aspects thereto, in particular their relevance to Indian conditions and market. It is also mentioned that funds may be raised for carrying on its activities through fees, donations or gifts, government grants, subscriptions, membership fees, course fees and other modes of raising money including the sale of publications towards attainment of main objects. From the above it is clear that IIRM is not a commercial coaching or Training centre. The respondents have further contended that the courses offered by them are approved by IRDA, the certificate issued will be signed by the Chairman of IRDA and IIRM is a joint venture of IRDA and Govt. of Andhra Pradesh therefore, the courses conducted by them are recognized by the law of the land. The lower adjudicating authority has held that the Insurance degree/course is not on the same pedestal as an Engineering/Medical degree course; hence the same is not covered in the exclusion clause. I find no merit in lower adjudicating authority's findings. No where in the Service Tax Rules it is provided that the institution which is conducting the courses should either be a University/Deemed University as per U....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ransferred to campus infrastructure project fund of the appellants. This fund has grown to Rs. 2,55,00,000/-. We find that fair amounts of profit were earned by the appellants through its activities in the last three fiscal years. Mainly owing to this surplus, the Commissioner found that GLIM is engaged in Commercial Training or Coaching. He also observed that the status of the appellants as a commercial coaching or training centre or not is not relevant and the commercial nature of the coaching or training is critical in deciding the exigibility to tax of the activity engaged in by GLIM. We do not find ourselves in agreement with this finding. What is subject to tax is commercial training or coaching provided by a commercial training or coaching centre. We find that the certificates for MBA or PGPM issued to the students on successful completion of these courses are not recognized by law. Therefore, the appellant is not an establishment exempt from service tax for the reason that it issues a certificate or diploma or degree recognized by law. GLIM conducts courses in association with a couple of universities in theUSAandNanyang Technological University,Singapore. Several member....