TaxTMI 
TaxTMI 
2015 (6) TMI 627
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.... The appellants are imparting education through 3 types of institutions as follows: * Junior Colleges - These colleges are wholly established by the appellants themselves. * Junior Colleges (associated with the Appellants Society) - These colleges are established by various other societies. The appellants society is associated with these societies/colleges and is actively managing the (colleges operating under the said Societies. The students approaching the appellant's society for admission are admitted to these colleges also and the said colleges are wholly managed by the appellant's society. * Coaching centers - These centers were established in locations outside the state of Andhra Pradesh in order to prepare students so as to enable them to appear for various competitive exams such as IIT -JEE. There are only four coaching centers established by the appellant's society which are outside the State of Andhra Pradesh Therefore, education is being provided by the appellants society through two types institutions, viz.: (i) Junior Colleges and (ii) Coaching Centers. 3. The appellant's society, through their own junior colleges and the junior colleges of other s....
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....cs, Physics, Chemistry) integrated with preparation for AIEEE. * Long-term EAMCET Oriented Intermediate (LEO) - Simultaneous education imparted for Intermediate and EAMCET with Duration of 2 years. The fee structure for each of the above streams would be different. 7. These activities being in the nature of 'Commercial training or coaching' services have been held by the respondent, to be covered under Section 65(26) of the Finance Act, 1994 read with Sections 65(27) and 65(105)(zzc) of the Act ibid and hence, exigible to service tax. The captioned appeals relate to a demand for the period from 1.7.2003 to 31.3.2007. 8. After investigations against the society which were conducted since the year 2003 the department issued a show-cause notice dated 8.9.2008 on the society proposing to demand service tax amounting to Rs. 87,38,34,876/- on the entire income received for the period 01.04.2003 to 31.03.2007 under the head of "Commercial training or coaching services". The demand has been quantified on the basis of information gathered from the Balance Sheets of the Society for the period 01.04.2003 to 31.3.2007 which included all the receipts of the Society from all their in....
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.... which the levy of service tax was imposed on "commercial training or coaching" services. 11. The service tax liability on commercial training or coaching service has been a subject matter of dispute right from 2008 when the issue came up before the Tribunal and decided. Needless to say that the dispute started much earlier. An explanation was inserted on 14.5.2010 which has already been reproduced above and as mentioned above it was given retrospective effect. Further, Notifications were also issued on 25.4.2011 and definition underwent further amendments on 1.5.2011. The issue involved in this case relates to the period from July 2003 to March 2007 and therefore except for the explanation inserted in 2010 and given retrospective effect from 2003, other amendments would not be of much relevance to the issue before us even though these amendments were also used by the appellant's counsel for arguing their case and the same will be dealt at the appropriate place. Before going into the question as to whether the retrospective amendment and insertion of explanation would have a impact on the case before us and examination of all the facts, it would be appropriate in our opinion t....
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....erson. Example: stock broker, advertisement agency, consulting engineer, custom house agent, C & F Agent, air travel agent, etc. in addition there were also examples where the definition uses the work commercial concern. For example, in respect of convention service, online information and database retrieval service, business auxiliary service, the expression commercial concern was used. There were three categories where definition neither used the term the meaning of which was provided by the enactment or the concern service name or the commercial concern it used the word by any person. The examples: survey and exploration of minerals service, transport of goods through pipeline, site formation and excavation and earth moving service, dredging service, etc. The conclusion that we reach by going through the definitions is whether the government wanted to levy service tax and collect the same only from commercial concern and nobody else, in the definition itself such a word was used. Therefore when the intention was not to collect the tax from concerns who did not have a profit motive, the words commercial concern has been used. When the word commercial concerns have been used to de....
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....ition itself excluded institute or establishments which issues certificate for diploma, degree or any educational qualification recognized by the law. If the institute itself did not issue the certificate, there was an exemption Notification issued. Notification No.10/2003-ST provide exemption to a commercial training or coaching center which conforms an essential part of a course or a curriculum of any other institute or establishment leading to a degree or education qualification recognized by law for the time being in force to any person. It also specifies that such an exemption is available only when the individual who receives such training or coaching pays for it. When we read the definition and the exemption Notification together, what emerges is that schools and colleges which provide training or coaching which forms an essential part of a course or curriculum of an establishment and leads to a degree or educational qualification are excluded. This would mean that the schools and colleges such as the one which lead to recognized education qualifications gets exempted even though they are covered by the definition. The definition excludes only those organizations which issue....
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....out retrospectively (from July 2003) so as resolve the disputes pending at different levels of the dispute settlement system." Explaining the purpose of insertion of Explanation, etc., became necessary because of the interpretation which came up subsequently. It has to be taken note of that in the decisions starting from Great Lakes, Institute of Management, the aspect such as the detailed exemption of the definition, the meaning of commercial training or coaching, the fact that it was a coined expression and the words and terms used while defining taxable service for different purposes were not discussed probably because the same was not argued at that stage with a proper focus. In our opinion, the suffix commercial used for training or coaching center cannot be attributed to the person providing the training or coaching but to the nature of training or coaching. 17. In fact, in olden days when there were large numbers of typewriting institutes even in small villages, many of the institutes call themselves as institute of commerce. The meaning understood by the students was that the institute taught typewriting and shorthand which are basically used for commercial purposes as we....
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....ne who sees the certificates would always recognize it as a certificate issued by Board of Intermediate Education, AP and not by SCEC. The kind of certificates/degree/diploma that we are taking about in the definition is the ones which are issued by the recognized/deemed universities and secondary education Boards and autonomous colleges whose certificate has been recognized by law. Therefore, 23. The next submission of the appellant is that the Board itself had clarified that service tax is not leviable on institutes providing commercial coaching in addition to recognized degree courses. It was submitted by the learned counsel that preparation for entrance examination in the colleges of the appellant-society was an integral part of the regular curriculum for intermediate education and even if it was in addition to regular education, the clarification issued by the Board on 20.6.2003 shows clearly that they were not covered. The clarification issued by the Board is reproduced below: "Where service tax is leviable on institutes providing commercial coaching in addition to recognized degree courses; some institutes like colleges, apart from imparting education for obtaining recogni....
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....nt's society follows the guidelines for the syllabus prescribed by the A.P. Intermediate Board, conducts regular internal assessments, follows a standard admission procedure and imparts education towards various subjects under the Intermediate Board. The appellants impart education to the students for intermediate course to appear for Intermediate examinations conducted by the Board of Intermediate Education, Government of Andhra Pradesh. The students writing the examinations conducted by the Board get mark lists/mark sheets from the Board and the conduct and transfer certificates from the colleges administered by the appellants. * The exclusion part indicates a situation where the institute conducts an academic course and issues certificate by itself and another situation where the institute conducts an academic course which is recognized by law. For instance, the law degrees conferred by the different law colleges are recognized by the Bar Council of India and certificates are issued by the respective State universities. The colleges provide the transfer certificate, the marks card and the conduct certificate which will enable a student to get enrolled as an advocate or to p....
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....e or who do not study in the colleges of SCEC or colleges managed by SCEC but take up optional courses for appearing in competitive exams. If the claim made above was correct, no student who was not studying in the colleges of/managed by SCEC could have taken up the special courses offered by SCEC for entrance exams. This directly shows that the submissions in this regard are not based on facts but have been made to avail the benefit of the definition/exemption notification. It has also come out from the investigations that in several places what is known as campus exist. The special training/coaching for the purpose of appearing in competitive exams is offered in such campuses only. It has been brought out by the Revenue in the statements given by S/Shri Shivaji, Ravi Kumar, KVS Rao who have clearly stated that the intermediate students were undergoing coaching at various campuses of SCEC. In fact in the statements, the Vice Principal also stated that students are allocated to different campuses/campus based on their performance in the regular intermediate course first/second year. We find that the submission made by the special consultant, the students of the colleges set up by S....
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....isting the limits prescribed by the Government or Director of Intermediate Education from time to time. Any excess fees collected beyond the limit prescribed will be treated as income of Government." 29. The correspondent/principal of the college who follow the rules of reservation for SC, ST and BC and other specified categories while making admissions. The principal will be held personally responsible for violation of rules of admission and management shall not interfere in this regard. The certificate also prescribes certain other conditions. The permission is granted to SCEC to start a profit college and the name of the college is specifically indicated in the certificate itself. The fact that the principal of the college signs the certificate, the stamp of the college is to be on the certificate issued by the Board and the liability of the principal of the college for implementation of government policies would show that the Board Itself recognizes the school/Jr. college as a separate independent establishment/institution and a body separate and start the school, for all other purposes the school is recognized as a separate entity. Nowhere in the certificate issued by the Boa....
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....avi Kumar which has not been contradicted by anyone till date. Since the colleges are required to be run according to academic plan prescribed by the Board and each college is required to adhere to such plans, the observations made by us above that the coaching provided for competitive exam is optional and distinct and separate and is provided in campus which are considered as separate ones by the SCEC themselves, seems to be the correct position. Therefore the claim that it is integral part of curriculum of college education is not based on facts and ground reality. 32. Another factor which in our view supports the conclusion is the fact that the training/coaching for competitive exam has to be necessarily optional since admittedly the appellants allocate students to different campuses based on their academic abilities and the fee also is higher and separate for providing such coaching. It cannot be of regular college in view of the restriction on fee to be charged and also the government policy to be followed as regards admission. All students who got admission and especially those who get admission on the basis of reservation as per the policy of government may not come up to t....
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....e that extended period may not be sustainable. We find this submission to be correct and therefore the decision in the case of NIBM cannot be applied to the facts of this case. In this case, in July 2003 itself as soon as the service was introduced in the statute books, the appellants were informed that they were liable to pay and they were asked to register themselves and start paying service tax. This was followed by correspondence with the appellants and further searches of their premises, investigations, recording the statements of various persons in the management which culminated in issue of show-cause notice treating the non-payment of service tax as an offence. Therefore the claim that NIBM's decision would be applicable for the purpose of limitation is not sustainable. 36. Another ground taken by the Revenue for taking a view that extended period is invocable is the fact that the appellants were aware of their liability as they had registered in Kota, Rajasthan and paid service tax there. For this the submission of the learned counsel is that appellants are running certain centers where exclusive training is provided for entrance examinations only. As regards coaching....
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....ppellants of entertaining a bona fide belief that they were not liable to pay service tax as what they were doing was not for profit. 37. Another ground taken by the appellants for claiming that the extended period could not have been invoked is that the entire transaction undertaken by the appellant in the present case was in the knowledge of the department since the year 2003. This is based on the fact that appellants had been informed by the Revenue that they were liable to pay service tax on 13.7.2003 and therefore it is appellant's submission that department was in the knowledge of their activity. Hence they are not liable to pay service tax. 38. The question of knowledge and the consequences of knowledge and its impact on limitation was considered by the Hon'ble High Court of Gujarat in the case of Neminath Fabrics Pvt.Ltd.:2010 (256) E.L.T. 369 (Guj.). The learned special consultant relied upon this decision to counter the claim made by the appellants. The observation of the Hon'ble High Court in paragraphs 16 to 20 which are relevant are reproduced below: "16. The termini from which the period of "one year" or "five years" has to be computed is the relevant d....
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....under sub-section (1) of Section 11A, stands extended to five years from the relevant date. The period cannot by reason of any decision of a Court or even by subordinate legislation be either curtailed or enhanced. In the present case as well as in the decisions on which reliance has been placed by the learned advocate for the respondent, the Tribunal has introduced a novel concept of date of knowledge and has imported into the proviso a new period of limitation of six months from the date of knowledge. The reasoning appears to be that once knowledge has been acquired by the department there is no suppression and as such the ordinary statutory period of limitation prescribed under sub-section (1) of Section 11A would be applicable. However such reasoning appears to be fallacious inasmuch as once the suppression is admitted, merely because the department acquires knowledge of the irregularities the suppression would not be obliterated." 39. Further, the learned special consultant also relied upon the decision of the Hon'ble Supreme Court in the case of M/s. Mehta and Co: 2011 (264) E.L.T. 481 (S.C.). In that case, the apex court held that provisions of Section 11A (1) [ pari ma....
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.... and the correspondence continued with the department. In fact in the letter dated 11.9.2003, the Assistant Commissioner, Vijayawada, had written a detailed letter in reply to the appellant's letter dated 1.8.2003 received by him on 1.9.2003 wherein the definition of 'commercial training and coaching centre' was explained and appellant was informed in clear terms that they were required to take registration. Reminders were sent and on 23.2.2004 also appellant was informed that they had not come forward to take registration. Only after this, the search operations were conducted and subsequently on 10.5.2005, the appellants were asked to give specific information regarding fees collected by them and several other records. 42. If the submissions made by the learned counsel are accepted, if a tax payer takes a stand that he is not liable to pay even after being informed on some ground or the other the moment department writes a letter to him, the limitation clock starts striking and within one year if the show-cause notice is not issued, no extended period could be invoked for the demand. If this claim is accepted, persons who defy the law and law enforcement agency and av....
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....is not at all acceptable especially in view of the decision of the Hon'ble Supreme Court and Hon'ble High Court of Gujarat. While making this observation, we have considered our own discussions about the definitions, the meaning of the definition of 'commercial training and coaching centre, the exceptions provided in the definition, the exemption notification issued, facts relating to activities of the appellants, fees collected by the appellants into account and it is not a blind consideration of only an isolated issue to come to the conclusion that appellants have not made out a case for not invoking extended period. Further the claim of the learned consultant that the appellants could not have entertained a bona fide belief because the same appellant followed the right procedure in Kota where they took registration and started paying tax. The fact that there also show-cause notice was issued, offence case was registered, because of dispute between the appellant and the department regarding quantum of service tax payable is another factor that may not be relevant but what is relevant is same person took the registration and started paying service tax at least on a por....
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....sions are applicable to the case of the appellants, even if the amendment made is considered as effective from the earlier date, yet extended period cannot be invoked in such a situation since this would show that the appellants could have entertained a bona fide belief. 45. Before we proceed to consider the decisions, it would be appropriate to discuss as to why a simplistic approach to take a view that because the subsequent decisions of judicial fora took a view in favour of the appellant, appellant could have entertained a bona fide belief would not appropriate. While applying the precedent decisions to any particular case, the facts of the case have to be taken into account which we have already done here and we have seen that after making efforts for more than two years the department proceeded to conduct search and investigations and thereafter show-cause notice was issued. We have discussed the definitions and have clearly come to the conclusion that as per the definitions, the obvious conclusion could have been that appellants are liable to pay service tax. We have also taken into account that the appellants themselves took registration and paid service tax in Kota. There....
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....subsequent decisions. In this case, when the assessee intimated the department that assessee being a charitable trust was not liable to service tax, there were no decisions of any judicial forum taking such a view. Such decisions came only in 2008 and thereafter. 48. It is also pertinent to note that it cannot be said that principle of contemporena exposito can be applied here. This is in view of the fact that the clarification and the legislative intent came into the picture only in 2010. Unless the doubts are raised either by the department or by the assessees and the matter reaches the Board, the legislative intent and clarifications are not issued. In this case, as can be seen in Rajasthan as well as in Andhra Pradesh, departmental officers had interpreted that the definition in a manner that it covered all organizations who provided such training or coaching. Department also entertained a view that schools, colleges/ universities who provided education leading to a degree (exempt) or who issued degree/diploma/certificate being self-financed autonomous institution or university, etc. were not covered. It also shows that there is no room for entertaining a belief that the asses....
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....o 'recognition by law' of the Course Completion Certificate and On Job Training Certificate given by such institute. 23. The expression 'recognized by law' is a very wide one. The legislature has not used the expression "conferred by law" or "conferred by statute". Thus even if the certificate/degree/diploma/qualification is not the product of a statute but has approval of some kind in 'law', would be exempt. 24. ".................. 25. We are of the view that the Act, the Rules and the CAR, having provided for grant of approval to such institutes and having laid down conditions for grant of such approval and having further provided for relaxation of one year in the minimum practical training required for taking the DGCA examination, have recognized the Course Completion Certificate and the qualification offered by such Institutes. The certificate/training/qualification offered by Institutes which are without approval of DGCA would not confer the benefit of such relaxation. Thus, the certificate/training/qualification offered by approved Institutes, has by the Act, Rules and the CAR been conferred some value in the eyes of law, even if it be only for the ....
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....e providing education which on completion entitled to the students to an education qualification viz., intermediate course. Once again it has to be noted that the educational qualification which a student acquires is not recognized by anybody or any ordinary prudent person as the one issued by the college run by SCEC or issued by SCEC. Anyone who sees the certificate and who considers that the student has completed intermediate course would only recognize it as a qualification given by the Board and not by the college or the appellant. The definition excludes only those institutions who themselves issue or certify the educational qualification which is recognized by law. Therefore, the observations made by the Tribunal would not be applicable to the appellants at all. 52. We also find ourselves in agreement with the submissions made by the learned special consultant that the observations in regard to educational institutions made by the Tribunal are in the nature of an obiter and have no bearing on the ratio of the final decision. He also submitted that the observations of the Larger Bench in 10 to 12 and 14 of their decision are very relevant in this context. The relevant paragra....
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....r coaching" means must be ascertained exclusively from the relevant provisions of the Act and applying the appropriate interpretative principles in case of grammatical, syntactic or contextual ambiguity. 13. ..................... 14. The other facet of the definition, of 'commercial training or coaching centre' in Section 65(27) defines the expression with reference to the nature and objectives of the activity pursued by a commercial training or coaching centre. In this definitional regime, training or coaching for imparting skill, knowledge or lessons on any subject or field constitutes commercial training or coaching. Though complexly drafted, this part of the definition seeks to define the contours of 'training or coaching' in the very provision and an identical expression employed in Section 65(27) as well. From the legislated definition, training or coaching therefore means imparting skill, knowledge or lessons on any subject or field. Parliament has not restricted the scope of 'training or coaching' as is defined, by superadding any conditions such as in terms of pedagogic methodology, course or training content, syllabus, duration, periodicity, tenu....
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....ed upon. * ICFAI vs. CC & CE: [2008] 17 STT 5019 (Bang.-CESTAT) * Administrative Staff College of India vs. CC & CE: [2009] 18 STT 89 (Bang.- CESTAT) * CDAC vs. CC & CE (Appeals-II): [2009] 18 STT 361 (Bang.-CESTAT) * Magnus Society vs. CC & CE: [2009) 18STT193 (Bang.-CESTAT) * Indian School of Business vs. CC & CE: [2009] 22 STT 189 (Bang.-CESTAT) 57. It has to be noted that these decisions came up only in 2008 and subsequently. During the disputed period from 2003 onwards, the appellants were being informed that the department had interpreted the definition differently. We have already examined and found that appellants were having separate campuses where training for competitive exams were given in addition to such training provide separately for college students as an optional course and being charged extra fee. The appellants themselves took the registration in Kota where they were running exclusive coaching centres and even then the appellants did not choose to take registration even in respect of exclusive coaching centers run by them in Vijayawada and Hyderabad. In none of the decisions the support of which have been claimed, it can be said that the facts under consid....
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....is still under the bona fide belief that they are not liable to service tax under the head 'commercial training or coaching service'. Therefore, no penalty is imposable. However, in view of the fact that we have already upheld suppression of facts and invocation of extended period, the penalty under Section 78 of the Finance Act would be mandatory. 62. The appellants also submitted that even if it is held that extended period is invocable, provisions of Section 80 of Finance Act, 1994 would be applicable in the present case. Section 80 of the Finance Act provides that no penalty shall be imposed on the assessee if the assessee proves that there was reasonable cause for the said failure. Unlike Central Excise Act and Customs Act where no such provisions are available, in the case of Finance Act, the provision under Section 80 of Finance Act still continues and therefore it is necessary to examine the submission that this is a fit case for waiver of penalty under different sections of Finance Act, 1994. 63. The only case comparable to the present case is the one in which this Tribunal considered the issue of liability under 'commercial training or coaching service' ....
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....d its existence in the statute itself becomes irrelevant. Moreover, there is no evidence brought out or there is any finding that the appellants collected service tax or included the element of service tax after the proposals were made for demanding the same. There is no clear finding that appellants have collected the tax separately or by enhancing the fees suitably, etc. Therefore in our opinion penalty under Section 78 in this case is required to be waived by invoking the provision of Section 80 of Finance Act, 1994. As regards the penalty under Section 76, there are decisions of various High Courts taking a view that penalty under Section 76 and 78 are mutually exclusive and therefore if penalty under Section 78 is imposed, penalty under 76 need not be imposed. In any case, the very same ground which in our opinion shall be the reasonable cause for non-payment of tax during the period would be applicable for penalty under 78 also. Therefore penalty under Section 76 is also waived by invoking the provisions of Section 80 of Finance Act, 1994. 64. As regards penalty of Rs. 1000/- under Section 77 of Finance Act, 1994, it is imposable since it is for mere contravention of the rel....
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....ounced in open court on ....................... ) Per: Anil Choudhary: 68. I had the advantage of going through the order recorded by, learned brother Shri B.S.V. Murthy, Member (Technical), but I am unable to agree with the same and hence, I record my separate order. 69. As regards the coaching provided in addition to normal curriculum by the appellant in the junior colleges (+ 2 course), the said activity is not taxable under the head Commercial Training or Coaching under Section 65(26) and (27) read with 65(105)(zzc) for the following reasons: - * The junior colleges are recognized by the Board of Intermediate Education, Andhra Pradesh. The students are enrolled for completing their intermediate or +2 course, which is part of 'formal education' and on completion of education through the junior colleges as per the prescribed syllabus, the students appeared in the examination "conducted by the Board and the certificate or degree is awarded by the Board. The students on successful completion of the intermediate course and on the basis of the certificate/marks sheet awarded by the Board, enables the students to seek further higher education like graduation or for admissi....
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.......... but does not include pre-school coaching and training centre or any institute or establishment which issue any certificate or diploma or degree or any educational qualification recognized by law for the time being in force. From the aforementioned exclusion clause, it is not material who issues the certificate or degree, but what is important is whether such certificate or degree or marks sheet is recognized by law. Similar view was taken by Delhi High Court in Indian Institute of Aircraft Engg. Vs. UOI - 2013 (30) STR 689. * In the facts of the case, the certificate/marks sheets are issued by the Board and countersigned by the Principal/Head of the Junior College, is recognized by law. * As per the clarification given by CBE&C Circular No. 59/8/2003-ST dated 20.6.2003, it has been clarified in para 2.2.3 that "where coaching for competition examination is provided by school/ college in addition to approved curriculum/ syllabus, still the coaching activity will not be taxable" (Quoted in para 23 above). * Separate fee charged by the appellant for providing coaching from the students of the junior college is not a deciding factor as per the provisions of the Finance Act, 1....
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....ppellant with respect to the activity in its coaching centre being not taxable, they being charitable institution registered under the Society Registration Act, 1860 and also recognized as a charitable institution under the provisions of the Income Tax Act, 1961, also has force. This was later on supported in view of the ruling pronounced by this Tribunal in the case of Great Lakes Institute of Management Ltd. Vs. Commissioner of Central Excise - 2008(10) STR 202 (Tri-Chennai). 71.2 The appellant's activity in respect of coaching classes is taxable in view of the subsequent explanation added with retrospective effect under Section 65(105)(zzc) of the Finance Act, 2010. Thus, it has been appreciated by the legislature also that the situation of confusion existed among the tax payers and also with the Court/Tribunal as regards liability of tax on the charitable organization(s) providing commercial coaching or training. 71.3 That delay in furnishing information sought for by Revenue from the appellant, cannot be a ground for invocation of extended period. All the powers of a Court with regard to attendance of witness, discovery of information/documents, etc. are vested in the ad....
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....he appellant through junior colleges under its management or under the management of others also as held by Member (Technical) or no tax would be leviable in such cases as held by learned Member (Judicial). * Whether extended period of limitation is invocable as held by Member (Technical) or is not invocable as held by learned Member (Judicial). * Whether penalty under Section 77 is to be set aside as held by learned Member (Judicial) or has to be imposed as held by Member (Technical). (Order pronounced in open court on 28.2.2014) Per: P K Das (TM): 75. The facts of the case, in brief, have already been narrated in the order of the learned Member (Technical), and therefore, there is no need for repetition. The points of the difference of opinion have also been stated above. 76. Heard both the sides and perused the records and written submissions filed by the Appellants. 77. The first issue is whether the Service Tax is leviable in respect of the coaching provided by the Appellant through their junior colleges under its management or under the management of others, as held by the learned Member (Technical), or no tax would be leviable in such cases as held by learned Member (....
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....ssuance of a certificate and includes coaching or tutorial classes but does not include pre-school 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." 80. The definition of "Commercial Training or Coaching Centre" have both inclusive and exclusive part i.e. it may include certain things and exclude others. The word "any" e.g. institute or establishment providing Commercial Training or Coaching in the main part of the definition, is a word having very wide meaning. It is noted that the definition also categorically includes coaching or tutorial classes". The word "includes" in the definition makes it clear that the intention was to make it more extensive. In this perspective, the exclusion part of the definition suggests a very limited purpose to "pre-school coaching and training centre" and any institute or establishment, which issues any certificate or diploma recognized by law. The "coaching or tutorial classes" mentioned in the inclusive part of the definition and it cannot be covered in the exclusive portion of the definition. While inte....
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....h the intermediate courses. 82. The learned Member (Technical) in his order had elaborately discussed the facts and held that the courses have no nexus with intermediate courses of the colleges. The Adjudicating authority had also given detailed findings on this issue as the coaching classes are conducted in different places (campuses and special fields). These facts were admitted by the Appellant in their statements. The relevant portions of the findings of the Adjudicating authority are reproduced below:- "58. In his statement dt.02.03.2006 given before the Superintendent of Central Excise under Section 14 ibid, Sri Yarlagadda Sasi Kumar, Campus Incharge of Sri Chaitanya EAMCET Coaching Centre, Sri Vyshnavi Bhavan, Gurunanaknagar Colony, had stated that "intensive coaching for EAMCET would be given in their premises; that the duration of the coaching is 8 to 10 months, that depending on the performance of the students, fees from Rs. 20,000/- to 50,000/- would be collected from each student; that the collection of fees and the details would be done at the Central Office and that in this premises, Attendance Register and records connecting to education were only maintained." 59.....
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....ere conducted in different campuses, separate fees and totally independent and had no nexus with the intermediate courses of the colleges. So, I agree with the finding of the learned Member (Technical) that Service Tax is leviable on the Appellant Society on such coaching classes. 84. The next issue is whether the extended period of limitation is invokable as held by learned Member (Technical) or not invokable as held by learned Member (Judicial). Learned Member (Technical) observed that the Appellants were aware of their tax liability as they have registered in Kota, Rajasthan and paid Service Tax. There is no logic or rational on different stand taken by the Appellant in Kota and Andhra Pradesh. The Appellants are not entitled to a bonafide belief that they are not liable to pay Service Tax. 85. Learned Advocate on behalf of the Appellant drew the attention of the Bench to the legislative changes of the definition from time to time and the views of the Tribunal in various decisions. I have noticed that the Appellant was running independent coaching classes in Kota Rajasthan, while, in Andhra Pradesh, the Appellant were running the colleges of intermediate courses and also offer....