TaxTMI 
TaxTMI 
2014 (8) TMI 101
X X X X Extracts X X X X
X X X X Extracts X X X X
....ngaged in post production services for film industry, media, advertising, etc. They started an education and academic wing during April, 2006 to provide a two year diploma course in Digital and Animation Effects . The curriculum of the course includes drawing, clay modeling, Matte Printing, Animation and Visual Effects, Motion Photography and Acting. 3.2. The Department, on scrutiny of the records, issued a show cause notice demanding payment of service tax, interest, penalty, etc. In response to the same, the appellant by placing reliance on Notification No.24/2004-ST, dated 10.9.2004, claimed exemption from payment of service tax. However, the Department was of the view that the courses offered by the appellant/assessee are in the nature of computer training and in view of the subsequent amendment dated 16.6.2005 to the notification, referred to above, the appellant, being a computer training institute, is not entitled to the benefit of above said notification dated 10.9.2004. The operative portion of the order dated 21.2.2011 passed by the Commissioner of Central Excise, Chennai-IV, reads as under: (i) I confirm the demand of service tax of Rs. 47,91,191/- (Rs. Forty seven lak....
X X X X Extracts X X X X
X X X X Extracts X X X X
....I) Ltd. under Section 77 of the Finance Act, 1994 for non-registration under CTC services. (x) I order payment of late fee of Rs. 4,000/- under Section 70 of Finance Act, 1994 for non-furnishing of ST-3 return for the period ending 30.9.2008 and 31.3.2009. (xi) I refrain myself from imposing penalty under Section 76 of the Finance Act, as penalty imposed under Section 78 would suffice. 3.3. Aggrieved by the said order, the appellant preferred an appeal before the Tribunal. The appellant also submitted written submissions, wherein it is specifically pleaded that the appellant has produced documentary evidence, including course content, to show that it is only a vocational training institute in the field of digital animation. According to the appellant, the Diploma course offered by them would fall under the category of vocational coaching and training eligible for exemption from service tax and they are not imparting coaching or training relating to computer hardware or computer software. 3.4. The Tribunal, after considering the plea of the appellant, was of the view that the training provided in writing codes using languages like UNIX or Oracle or Java are on the same footing a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng or coaching by a computer training institute ; (ii) in the Explanation, after clause (ii), the following clause shall be inserted, namely:- iii) Computer training institute means a commercial training or coaching centre which provides coaching or training relating to computer software or hardware. 7. In the case on hand, the course offered by the appellant, prima facie, is to impart skills to enable the trainees to seek employment or undertake self-employment, directly after such training or coaching. Therefore, the reasoning given by the Tribunal that the training imparted by the appellant is more relating to the usage of the software and not about the contents of the software, and the same requires detailed examination enures to the benefit of the appellant. 8. That apart, the appellant has pleaded undue financial hardship. It was urged before this Court that since the appellant has already paid a sum of Rs. 7,95,612/- as against the demand of Rs. 47,91,191/- towards service tax, the condition of pre-deposit imposed by the Tribunal may be waived considering the fact that the appellant is only a training institute helping students to get trained for getting employment. 9. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ith such deposit subject to such conditions as he or it may deem fit to impose so as to safeguard the interests of the Revenue: Provided further that where an application is filed before the Commissioner (Appeals) for dispensing with the deposit of duty demanded or penalty levied under the first proviso, the Commissioner (Appeals) shall, where it is possible to do so, decide such application within thirty days from the date of its filing. 11. Two significant expressions used in the provisions are undue hardship to such person and safeguard the interests of the Revenue . Therefore, while dealing with the application twin requirements of considerations i.e. consideration of undue hardship aspect and imposition of conditions to safeguard the interests of the Revenue have to be kept in view. 12. As noted above there are two important expressions in Section 35-F. One is undue hardship. This is a matter within the special knowledge of the applicant for waiver and has to be established by him. A mere assertion about undue hardship would not be sufficient. It was noted by this Court in S. Vasudeva v. State of Karnataka, (1993) 3 SCC 467 that under Indian conditions expression undue hard....