2011 (7) TMI 506

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....Satapathy: Heard both sides. 2. The appellant, M/s. K.K. Academy Private Ltd., is a Company engaged in imparting training to children in the age group of 6-13 years in the name and style as "Aloha India" [hereinafter referred as "Aloha"]. The appellant through its various franchisees conducts a course called "Mental Arithmetic" for children. The course has a 8 level structure and each level is o....

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....r, Ld. Adv., appearing for the appellants states that the demands made in respect of these two appeals can be divided into three categories:-     a. Demand in respect of "Franchisee Services" in respect of amounts received by the appellants from persons who have been granted "Franchisees" for imparting training through "Abacus" using training method for which the appellants are the....

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....a reduction in the penalty amount. 6. As regards Abacus training given to the students, the department seeks to tax the amount received towards the same under "Commercial Training or Coaching Services". The Ld. Advocate points out that such training has been held to be recreational training by the Bangalore Bench of the Tribunal in Fast Arithmetic Vs. Asst. Commr. of C.Ex & S.T., Mangalore - 2010....

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....sputing their tax liability. As such, we confirm the demand of Rs. 19,78,820/- relating to the franchisee services and order that the amount already paid be adjusted against the demand confirmed by us. As regards the penalty, considering the fact that only Rs. 3.5 lakhs was paid after a delay, we reduce the penalty imposed on the appellants to Rs. 3.5 lakhs under Section 78 of the Finance Act, 199....