2017 (1) TMI 1440

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng taxable service like "Commercial Training or Coaching", "Frendering of immovable property", "Franchise Service" and "Management Consultant Services". Certain investigations were conducted against the appellant and the Department proceeded against them for short payment of service tax during the period 2003-04 to 2007-08. The impugned order was passed on completion of the adjudication proceedings. Service tax amount of Rs. 4,44,39,518/- was confirmed against the appellant. Penalty of equivalent amount was also imposed under Section 78 of the Finance Act, 1994. Further, penalties were also imposed under Section 76 and 77 of the Act. 2. Ld. Counsel for the appellant explained the activities undertaken by the appellant. It is submitted that....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... was also contended that any institute, which is imparting education for recognized degrees/training and also for competitive examinations and entrance tests, etc, the said institute is outside the purview of service tax liabilities. Reliance was placed on the Board's Clarification dated 20.06.2003. Further, the appellants were training the Government employees in upgrading their skills and the Government only pays grants in aid. Reliance was placed on the Tribunal's decision in APITCO LTD. - 2010 (20) STR 475 (Tribunal-Bang.). 5. Ld. Consultant submitted that the bulk of the demand relates to appellant's activity relating to various welfare schemes of the Central or State Governments, for which they are providing training for participants....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the university as per the MOU. Further, we also note that the training given to the Government servants in skill upgradation cannot be brought under the "Commercial Coaching or Training". The activities of the appellants in connection with the implementation of various welfare schemes of the Government have not been examined in correct perspective by the Original Authority. Since there is no discussion at all regarding services-wise liability with clear quantification, activities-wise, the impugned order suffers from serious infirmity of vagueness and lack of application of mind. As already noted, the whole demand has been confirmed in a summary manner simply based on the annual balance sheet of the appellant with no detailed analysis of th....