TaxTMI 
TaxTMI 
2019 (2) TMI 93
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.... allowed their appeal and set aside the demand on limitation holding that there was no suppression of facts. Aggrieved by the order of the CESTAT, revenue filed an appeal before the Hon'ble Supreme Court in Civil Appeal No. 579/2010. The Hon'ble Supreme Court remanded the matter back to the CESTAT directing to dispose the appeal in the light of the retrospective amendment by insertion of an explanation to Sec.65(105)(zzc) made effective from 01.07.2003. In the remand proceedings, CESTAT-Bangalore vide Final Order No. 514-520/2012 dated 31.07.2012 confirmed the demand along with penalty. However, it observed that the appellant could have availed the benefit of notification 09/2003 available for vocational training services. Therefore, CESTAT remanded the matter back to the adjudicating authority to examine the availability of the benefits of this notification. 3. Not satisfied with the order of the CESTAT, the appellant preferred an appeal before the Hon'ble Supreme Court vide Civil Appeal No.8787/2012 dated 18.11.2013 which is pending before the Hon'ble Apex Court. Meanwhile, the adjudicating authority, in pursuance of the CESTAT's Final Order No.514-520/2012, took up the matter....
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....zzc) of the Act. • The decision of the Tribunal and this Court in Administrative Staff College of India and all other crucial decisions were rendered before the crucial retrospective amendment of section 65(105)(zzc) of the Act and, hence, are of no precedential value. The same is also the situation with regard to Board Circulars issued prior to amendment;' • Without prejudice alternative plea of availability of exemption under Notification 9/2003-ST dated 20.06.2003 is a virgin plea which has got to be substantiated by the parties concerned and will have to be examined by the adjudicating authorities concerned; • The state of affairs of most assessees, on the issue of the extended period of limitation is more or less the same state of affairs as in the IFCAI cases. The show cause notices and the relied upon documents loudly disclose the suppression of facts by these parties, whose intent to evade payment of service tax is evident from the records. The decision of this Hon'ble Court in CCE v. Mehta & Co, 2011 (264) ELT 481 (SC) which holds that the extended period of limitation could be reckoned from the date of acquisition of knowledge by the....
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....ect of getting direct employment soon after completion of studies/courses which are offered by these institutions cannot make them vocational institutes. They continue to be academic institutions with the distinction of being called and known as professional (like engineering, medicine, polytechnic, management) colleges and non-professional colleges offering pure and applied sciences, arts, commerce, etc., By no stretch of imagination they can be called as vocational colleges or institutes." 7. The appellant also pleaded some additional grounds before the Commissioner as follows: 1) That the appellant had rendered educational services which cannot be classified under the category of 'commercial training or coaching services'. 2) That the courses offered by ISB were recognized by law in view of Maharashtra State Government resolution and circulars issued by the Ministry of Education. 8. The learned Commissioner has not accepted either of these submissions. The present appeal by the appellant is on the following grounds: a) They are a not for profit organisation created in pursuance to Memorandum of Association and not a commercial organisation. b) They have got exe....
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....t or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes but does not include preschool coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognised by law for the time being in force." 2. The intention of the legislation, as may be seen was to levy service tax on training or coaching which are commercial in character and the institution or the establishment undertaking the activity must essentially be a commercial concern. In 2006, CBEC has issued circular stating that institutions like IITs & IIMs cannot be called commercial concerns. Similarly, in the present case, ISB is also a non-profit making company and not a commercial concern. The appellant is engaged in imparting education and such education is clearly beyond the intention of the legislation. They registered as a company under Sec.25(1)(a) of the Companies Act as a not for profit company and they do not declare any dividend or distribute surplus of profit. In the case of Institute of Banking Personnel Selection v. CST, Mumbai [2007 (8) STR 579 (Tri-Mumbai)] it was....
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....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." 10. Both these notifications define vocational training institution as 'commercial training and coaching centre' which provides vocational coaching or training that impart skills to enable trainee to seek employment or undertake self employment after such training or coaching. If their institute is held to be commercial training or coaching institute, then they would be covered by this definition of vocational training institute in the above two notifications. The type of courses which they offer are theoretical and practical skill based training in areas such....