TaxTMI 
TaxTMI 
2015 (1) TMI 504
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....Section 3 of the Insurance Regulatory and Development Authority Act, 1999. IRDA has been conferred powers under Section 42 of the Insurance Act, 1938 to prescribe rules for Licensing of Insurance Agents. IRDA is further empowered to prescribe requisite qualification, training and examination by the Insurance Agent under Section 114A of the Insurance Act, 1938. As per IRDA (Licence of Insurance Agent) Regulation, 2000 approves and notifies certain institutions as approved institutions within the meaning of Regulation 2(b) of said Regulation. The appellant is an approved institution as per IRDA Regulation. To obtain a licence, Regulation 3(1) prescribed that the candidate is to apply by making an application, Regulation 3 (ii) prescribed that the candidate should possess the practical training as specified under Regulation 5, a licence can be issued. As per Regulation 5 provides that a training is mandatory which is to obtain by the candidate from approved institutions as prescribed under the said rules. Thereafter under Rule 6, the candidate has to pass an examination conducted by Insurance Institute of India, Mumbai or some other body which issues a certificate to practice as an In....
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....003-ST dated 20th June 2003 which provides exemption to vocational training institute. To support this contention he relied on the decision in the case of Pasha Educational Training Institute Vs. CCE, Hyderabad - 2009 (14) STR 481 to say that in the case of the competitor of the appellant in similar set of facts, this Tribunal held that the training to the candidate is a vocational training. Therefore, the institute is Vocational Training Institute and eligible for exemption under Notification No. 9/2003 ibid. 4. He further submits that a similar issue came up before the Hon'ble High Court of Delhi in the case of Indian Institute of Aircraft Engineering Vs. Union of India - 2013 (30) STR 689 (Del.), wherein the Hon'ble High Court has held that such type of training which is governed by a law is not covered under the definition of Section 65(27) of the Finance Act, 1994. He further submits that the appellant is having a good case on limitation also as the appellants was under the bona fide belief that their activity is not liable for service tax. Therefore, they did not take registration and did not pay the service tax. In these circumstances, he prays that impugned order is to be ....
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....ng or coaching for imparting sports, with or without issuance or a certificate and include coaching or tutorial classes but does not include preschool coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognized by law for the time being in force. 9. On plain reading of the said provision, we find that any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognised by law for the time being in force is not covered under Commercial Training or Coaching Centre. Therefore, the issue arises before us whether the training imparted by the appellant is having any recognition by law or not? 10. We have seen Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulation, 2000 and gone through the various provisions of said regulations which are extracted here below : 2(b) Approved Institution means an Institution engaged in education and/or training particularly in the area of insurance sales, servic....
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....ence after the commencement of these regulations, before seeking renewal of licence to act as an insurance agent, shall have completed, at least twenty five hours practical training in life or general insurance business, as the case may be, from an approved institution. 6. The Applicant shall have passed the pre-recruitment examination in life or general insurance business, or both, as the case may be, conducted by the Insurance Institute of India, Mumbai, or any other examination body. Ongoing through these regulations, we observe to become an insurance agent, the candidate needs three qualifications : (a) He should be having a statutory qualification i.e. studied up to 12th standard. (b) He should have undergone a practical training from a recognised institute and (c) To pass an examination conducted by Insurance Institute of India, Mumbai or any other institute prescribed by regulations. 11. After going these provisions, we find that it is mandatory for a candidate to go for practical training from the approved institute which is the appellant. In these set of facts, we are of the view that the certif....
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....approved training curriculum and successfully pass the examinations as per the approved course syllabus; (iii) that the DGCA fully controls such training institutes by prescribing syllabus, number of seats per session, manner in which the exam is to be conducted as well as the manner in which the certificate is to be issued, though the candidates get the Final Licence i.e. BAMEL from the DGCA after qualifying further examination conducted by the DGCA; (iv) that though Service Tax in India was introduced in the year 1994 but commercial training or coaching services were brought under the Service Tax net only with effect from 1-7-2003 by insertion of Clause 65(105)(zzc) in the Finance Act by making services provided by a commercial training or coaching centre in relation to commercial training or coaching as a taxable service; In these set of facts, the Hon'ble High Court has examined the issue and observed as under : 20. The position which thus emerges is that :- (A) That successful completio....
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....d, formally acknowledging the existence; and, in Concise Oxford Dictionary as acknowledging the existence, validity or legality of. 26. There can be no doubt that such recognition through the Rules framed as aforesaid and through issuance of CAR, is a recognition by law, which is defined in Blacks Law Dictionary, 8th Edition as the aggregate of legislation, judicial precedents and accepted legal principles and the set of rules or principles dealing with a specific area of legal systems. The Rules and the CAR aforesaid dealing with aircrafts, there can be no doubt, are law. The Supreme Court in Narsingh Pratap Singh Deo v. State of Orissa - AIR 1964 SC 1793 held that a law generally is a body of rules which have been laid down for determining legal rights and legal obligations which are recognized by Courts. Similarly, in R.S. Nayak v. A.R. Antulay - (1984) 2 SCC 183 it was held that law includes any Ordinance, By-law, Rule, Regulation, Notification, Custom or Usage having force of law. The Rules and CAR aforesaid have been enacted in exercise of legislative power as aforesaid. ....