2012 (7) TMI 49
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....aid amount is under the head "Consulting Engineers' Service" and the rest of the demand amounting to approximately Rs. 1.18 crores is under the head "Commercial Training or Coaching Service". Nearly, 1/4 th of the demand of service tax is within the normal period of limitation and the rest of the demand has been raised by invoking the extended period of limitation. 2. The main contention of the appellant is that they are a society registered under the Tranvancore Cochin Literacy, Scientific and Charitable Societies Registration Act, 1955 and is not liable to pay any amount of service tax under the Finance Act, 1994 inasmuch as the society was discharging only governmental functions. Elaborating this point, the learned Counsel has referred ....
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.... has been sought to be taxed under the head 'Consulting Engineer's Service'. The learned Counsel has argued that none of the above activities would fall within the ambit of 'Consulting Engineer's Service'. They were only educational activities which were conducted in exercise of sovereign governmental function. Therefore, service tax is not leviable on the fees charged from the students. 3. It is submitted that, education being a priority sector, only those educational activities undertaken by private individuals and organizations with profit motive would be coming within the ambit of levy of service tax under the head 'Commercial Training or Coaching Service'. The impugned demand of service tax of Rs. 1.18 crores, therefore, requires to b....
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....in the larger public interest as they are working in the priority sector of education under the guidance of the State Government with the funds granted by that Government. 7. The learned SDR has opposed the present application on the strength of the findings recorded by the learned Commissioner. It is his submission that, even as per the orders produced by the appellant, it cannot be said that the diplomas and certificates issued upon completion of the courses conducted by the appellant in various disciplines are recognized by "law". According to the learned SDR, the courses were conducted and certificates were issued by the appellant at their own expense and such expense was met out of the fees charged from the students. Even when examina....
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....ted sanction to the Director of Technical Education to conduct training programs jointly with the appellant. All Government Orders, by and large, indicate that the entire expenditure of courses had to be met by the appellant. Even where the Controller of Technical Education conducted examination and awarded diplomas, the expenditure was to be met by the appellant. The society may be funded by the government for general purposes. But, in respect of the activities in question, the appellant does not appear to have been funded by the Government. Prima facie, all the expenses, whether in the conduct of courses/training programs or in the award of diplomas/certificates, were met by the appellant out of the fees collected by them from the student....