2015 (9) TMI 474

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....Act, 1994. Commissioner (Appeals) has upheld the order. 3. Ld. Consultant for the appellant submits that they are providing distant education as per the agreement between Alagappa University, Karaikudi & Periyar University, Salem and the coaching is offered as per the University Curriculum and the students appear for examination and the degrees are awarded by the respective Universities. He drew attention to MOU dt.1.5.2009 signed between Alagappa, Karaikudi Universities and the appellant. They have no direct role and is controlled by the universities. Accordingly, both curriculum and fees are decided by the university as per the agreement. He submits that this issue has already been settled by various orders of the Tribunal. One of such....

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.... at Karaikudi and Periyar University at Salem through the distant education programme is supported by the memorandum of understanding submitted by them. The Kerala High Court's decision in the case of Malappuram Distt. Parallel Colleges Association Vs. Union of India - 2006-TIOL-35-HC-KERALA-ST has held that the provisions of Finance Act, 1994 authorising levy of service tax on parallel colleges are arbitrary and violative of Article 14 of the Constitution of India. It has also been held by the Hon ble Kerala High Court that levy of service tax for services rendered by parallel colleges, which indirectly falls on students but while simultaneously provided exemption to regular affiliated college allowing students therein to study free of tax....

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....o study free of tax, is patently discriminatory and violative of Article 14 of the Constitution of India. 5. Following the ratio of the cited decision of the Hon'ble Kerala High Court, which has been followed by the Tribunal in the case of JMC Educational Charitable Trust vs. CCE, Trichy vide Final Order No. 1027 dated 23.9.2010, we are of the view that the levy of service tax in respect of the training and coaching provided by the appellants which form an essential part of a course or curriculum of a university, leading to issuance of certificate or diploma or degree to the students recognized by law is not justified, even though the same is obtained by the students of the institution run by the appellants through Distance Education....