TaxTMI 
TaxTMI 
2018 (12) TMI 944
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....y the appellant fall under the category of 'Commercial Coaching and Training Services', a show-cause notice demanding Service Tax for the period from 2006-07 to 2010-11 was issued to the Appellant for recovery of service tax not paid during the said period. On adjudication by the Commissioner of Central Excise on 30.03.2013, the demand was confirmed with interest and penalty. Aggrieved by the said order, the appellant preferred an appeal before this Tribunal and the Tribunal vide order dated 12.10.2017 held that the courses imparted by the appellant are taxable under the taxable category of 'Commercial Coaching and Training' Services, and remanded the matter to the adjudicating authority to examine the benefit of extending benefit of cum tax value and other issues about includability of certain elements of expenditure in the gross value of the taxable services; the Tribunal has also confirmed the extended period of limitation and imposition of penalties under Sections 76, 77 and 78 of the Finance Act, 1994. In the mean time, the appellant was issued with Statement of Demand (SOD) on 7.1.2013 for the subsequent period 1.4.2011 to 31.3.2012 demanding Service Tax of Rs....
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....as a concept is entirely different from coaching or training and the activity of educating students in the field of design cannot be subjected to Service Tax under the aforesaid heading. He has submitted that the terms "coaching" or "training" are narrow in their scope in the sense that the same are focused on a particular subject or skill or job and they differ from the activity of imparting 'education'. The appellant's institute is established solely for the purpose of imparting education in the field of design and it is a non-profit society registered under the provisions of Indian Trust Act, therefore, the activity undertaken by the appellant no manner akin to training or coaching of the student. It is his plea that the intention of legislature has always been to exclude the activity of 'education' from the ambit of Service Tax. To buttress his argument, the learned Sr. Advocate referred to the definition of other services, namely, cab, renting of immovable property, tour operator etc. which is exempted from service tax when used by an Education Institute. He has submitted that the courses offered by the appellant are in collaboration/ affiliation with the f....
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....f commercial coaching and training services and liable to Service Tax, but remanded the matter to the adjudicating authority for re-computation of demand extending cum tax benefit and other issues raised by the appellant. He submits that while passing the said order, this Tribunal referred to and relied upon the larger Bench decision of this Tribunal in the case of Great Lakes Institute of Management Ltd. Vs. CST - 2013 (32) STR 305 (Tri-LB). He submits that there is no change in the facts and circumstances for the subsequent period, hence the judgment of the Tribunal is squarely applicable to the facts of the present case also for the subsequent period. He submits that the appellants were issued statement of demand on 7.1.2013 for the period 2011-12 and thereafter the show-cause notice dated 31.10.2013 was issued for the period 2012-13 on the same issue of demanding Service Tax for providing commercial coaching and training services; further Rs. 22.29 lakhs demanded on the other income shown in the balance-sheet for the year 2011-12 invoking extended period of limitation as the balance-sheet was filed with the department subsequently after repeated reminders. He has further submit....
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....vice Tax not paid invoking the extended period of limitation. 6.1 As far as the first issue is concerned, the appellant has disputed the liability of Service Tax for the period 1.42011 to 30.6.2012 and for the period after 1.7.2012 to 31.3.2013, the entire amount of Service Tax with interest has been discharged by the appellant. For the period 1.4.2011 to 30.6.2012, the contention of the Revenue is that the judgment of this Tribunal dated 17.10.2017 for the period 2006-07 to 2010-11 is squarely applicable, wherein this Tribunal upheld the adjudication order dated 30.3.2013 confirming the levy of Service Tax on the services of awarding Graduate/ PG Diploma relating to design management course by the appellant observing that it is taxable under category commercial coaching and training services. While recording reasons in following the ratio laid down by the Larger Bench of this Tribunal in Great Lakes Institute of Management's case, this Tribunal observed as follows: - "6. We have carefully considered the submissions made by both the sides and perused the records. From the facts of both the cases, we find that the appellants are providing various education programmes in di....
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.... whether such imparting of skill, knowledge or lessons is in respect of particular discipline or a broad spectrum of disciplines/ academic areas; irrespective of the nomenclature or description of the institute or establishment, as a coaching or training centre or an educational institution; regardless of whether an institute or establishment is incorporated by or registered under any law; and irrespective of distinctions on the basis of curriculum, course content, teaching methodology, course duration or otherwise. Activities of imparting skills, knowledge, lessons on any subject or field or when provided by any entity, institution or establishment which is excluded by a specific and legislated exclusionary clause would alone be outside the fold of the taxable activity." In view of the above Larger Bench answering question of law presented before it, held that except training or coaching falling in the exclusion category of all training or coaching falls under the definition of commercial training or coaching service, hence the same is taxable. In view of the Larger Bench judgment, the issue in hand in the present appeal is no longer res integara. Therefore the demand confirmed....
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....with intent to evade payment of tax, I thus hold that the proviso to Sec 73(1) was rightly invoked in the show cause notice dt 5-4-2012. Para 23 of OIO No. 34/P-III/ST/COMMR/2012-13 dt. 30.3.2013 in the case of M/s. MIT Institute of Design- "23. Invocation of extended period for demand of duty beyond one year: 23.1 Having decided the issue of taxability, I now proceed to take up the Issue of applicability of extended period in the instant case. The relevant provision, i.e. Proviso to Sub Section (1) of Section 73 specifies, as below: "Provided that where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reason of-(a) fraud; or (b) collusion; or (c) willful mis-statement; or (d) suppression of facts; or (e) contravention of any of the provisions of this Chapter or of the rules made there under with Intent to evade payment of service tax, by the person chargeable with the service tax or his agent, the provisions of this sub-section shall have effect, as if; for the words "one year", the words "five years" had been substituted. 23.2 The service tax levy operates on a system of self assessment and the onus....
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.... "Thus it is evident that the appellants were aware of their service tax liability In respect of ORC received by them from Malaysian Airlines during the period of dispute. They had been receiving such payments through credit notes which mentioned the amounts In terms of Indian rupee and the money was realized. In the same currency, However, the appellants did not choose to get themselves registered with the department for payment of service tax on ORC in the category of "Business Auxiliary Services", They did not file returns of this commission and did not pay service tax thereon. This conduct of the appellants Invited action under Section 73(1)(a) of the Finance Act, 1994 Inasmuch as the omission on the part of the appellants In filing return of ORC under Section 70 of the Finance Act, 1994 despite their knowledge of tax liability was evident to the Central Excise officer authorized to take such action. We, therefore, hold that the extended period of limitation was rightly invoked against the appellants. 23.4. Applying the ratio of the above decision to the facts of the present case, it is held that the omission to get registered with the Service Tax department for ....
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....23 of the order-in-original as reproduced above, the appellants have contravened the provisions of Chapter of Finance Act, 1994 and Rules made there under with intent to evade payment of service tax. They could not make out a case of reasonable cause was not discharging the service tax. Accordingly the penalties was rightly imposed under the said Sections, we do not incline to interfere with." 6.2 We do not find any justification or reason in not following the aforesaid finding of the Tribunal in the appellant's own case that the services rendered by the Appellant are in the nature of commercial training or coaching services and leviable service tax for the period in question. 6.3 On the issue of demanding Service Tax on 'other income' as reflected in the respective Balance Sheet, we find that the learned Commissioner after analyzing each and every element of charge collected with the fees in relation to the service provided under the category of commercial coaching or training services, held that only the amount of Rs. 37,74,375/- collected could be considered to fall under the taxable category of commercial training or coaching services and accordingly reduced t....