TaxTMI 
TaxTMI 
2015 (6) TMI 694
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.... Appeal holding that the appellants are liable to pay tax under the category of "Commercial Training and Coaching service". Demands of duty, interest and penalties under Sections 77 & 78 in the case of the first two appellants and under Section 78 in the case of third appellant have been ordered. The appellants are in appeal against these orders. 3. The appellants are engaged in conducting courses at post graduate level in the field of Marketing, Finance, Human Resources, System Management etc. The service provided by them was held to be taxable under the category of "Commercial Training and Coaching service." In the second appeal for the period 1.04.2006 to 31.03.2011 the demand is confirmed by invoking the larger period of limitation. In this period the appellant became a Public Charitable Trust. In the first appeal, the show-cause notice included amount of tuition fees only for payment of service tax whereas in the second Appeal other amounts such as student development fees were also included. 4. Heard both sides and considered the submissions. As the submissions are common they will be dealt with together in our order. 5. The first contention of the Ld Counsels is that thei....
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....vocation or occupation. As the training provided by them pertains to marketing, finance, etc. it is clearly vocational since marketing, finance etc. are all occupations, business, profession or calling. He also emphasises that all their students were directly employed by top companies after getting coaching. Therefore, there is no reason to deny the exemption under the plain definition of the term "vocational training institute" as it stood in the Notification before its amendment in 2010. The students did not take up the courses to obtain recognised degrees but took up courses which enabled them to seek employment. Thus this requirement in the Explanation is also met. He referred to the decision of the Tribunal in the case of Ashu Export Promoters P. Ltd. 2012 (25) S.T.R. 359 (Tri. - Del.) which has been upheld by the Hon'ble Delhi High Court 2014 (34) STR 161. The High Court held that the term "vocational training" was narrowed down by Notification 3/2010 when a condition was stipulated that the "vocational training institute" must be affiliated to the National Council for Vocational Training. Prior to this Notification, the earlier Explanation will hold good. The ld. counsel....
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.....24/2004-ST dated 10.9.2004. Notification No. 24/2004-ST dated 10.9.2004 read as under:- "In exercise of the powers conferred by sub-section (1) of Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services provided in relation to commercial training or coaching, by, - (a) a vocational training institute; or (b) a recreational training institute, to any person, from the whole of the service tax leviable thereon under section 66 of the said Act. Explanation.- For the purposes of this notification,- (i) "vocational training institute" means a commercial training or coaching centre which provides vocational training or coaching that impart skills to enable the trainee to seek employment or undertake self-employment, directly after such training or coaching; (ii) "recreational training institute" means a commercial training or coaching centre which provides training or coaching relating to recreational activities such as dance, singing, martial arts or hobbies. Above notification exempts taxable service provided in relation to commercial training or coaching b....
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....ent Accounting Management Information System Manufacturing Management Project Management Corporate & Business Laws Financial Analysis Operations Management Quality Systems Management Advanced Data Analysis using MS Excel Commercial Laws Sales & Distribution Management Operation Research Techniques Psychology & Organizational Behaviour Performance Management System Applied Statistics Systems Management SPSS Applications Enterprise Management -Case Studies Enterprise Mgt. -Case Studies System Analysis and Design Micro Economics SPSS Theory & Practical Strategic Business Management Case Studies Business Communication Macro Economics Negotiation and Contacting Business Mathematics Advance Statistics Self Preparation Self Preparation Self Preparation Current Affair Analysis Current Affair Analysis Current Affair Analysis Student Specific Assignment -Lib Student Specific Assignment- Field Student Specific Assignment -Field Community Work -20 hrs. Community Work -20 hrs. Community Work -20 hrs. With Consumer, Market, Organisational or Social Research Assignments From the course content, it is clear that courses are a....
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....g to engineering and non-engineering disciplines are as under: Norms for Engineering and Non-Engineering trades under Craftsmen Training Scheme (under semester pattern) These norms will come into force w.e.f. August 2013 session Engineering Trades: Sl. No. Name of the Trade Duration Unit Size Year/Months No. of Semester Educational Qualification 8th passed 1 Carpenter 16 1 2 2 Foundry man 16 1 2 3 Mason (Building Constructor) 16 1 2 4 Mechanic (Tractor) 16 1 2 5 Non Engineering Trades Sl. No. Name of the Trade Duration Unit Size Year/Months No. of Semester Educational Qualification 8th passed 1 Embroidery and Needle Work 16 1 2 2 Cane Willow and Bamboo Work 16 1 2 3 Weaving of Silk and Woolen Fabrics 16 1 2 4 Weaving of Woolen Fabrics 16 1 2 62 Fire Technology and Industrial Safety Management 20 1 2 7. The nearest Trade is Human Resource Executive, Marketing Executive, Finance Executive. These trades are in very very narrow campus compared to M.B.A. Cou....
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....e value of the service. 9. The student deposit fund is collected as a refundable security deposit to meet unforeseen expenses. As long as these expenses are specifically charged to the students the same cannot be included in the value of service applying the above ratio. 10. We also find that the amount collected towards sale of forms, prospectus will not be includable in the value on which service tax is demanded relying on the Tribunal's judgment in the case of Cerebral Learning Solutions P. Ltd. 2013 (32) STR 379 (Tri-Del) which held that Notification 12/03-ST dated 20.06.2003 exempts service tax on so much of the value of taxable service as is equal to the value of the goods and materials sold by the service provider to the respondent of service. The same decision was taken by the Tribunal in the case of Chate Coaching Classes P. Ltd. 2013 (29) STR 138. 11. On the issue of penalty, it was contended that they are entitled to the benefit of Section 80 on the basis of bonafide belief that they are not liable to service tax. This is in consonance with the various decisions of the Tribunal. In the case of the second appellant it was contended for the period April 2006 onwards....