2019 (3) TMI 1440

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.... The respondent-M/s Tandem Integrated Services is a firm providing commercial training and coaching in various fields. They also have a service tax registration. It is alleged that the respondent had not fully discharged their service tax liability for the financial years 2003-04, 2004-05 and 2005-06 as a "commercial training and coaching centre". The assessee had also provided services falling under the category "franchisee services", which was brought into the service tax net. 2. Summons under Section 14 of the Central Excise Act, 1944 was issued to the Chairman of the respondentfirm. It was revealed that the firm has been imparting the following training to students to appear for various examinations: a) Engineering/Medica....

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....icating Authority, relying on the decisions of this Court in Malappuram District Parallel College Association v. U.O.I., 2006 (2) STR 321 (Ker) and St.Antony's Educational & Charitable Society v. U.O.I., 2006 (1) STR 137 (Ker.). Reliance was also placed upon Circular No.59/8/2003 dated 20.06.2003 of the CBEC, more specifically in para 2.2.3. 5. Aggrieved by Annexure A order dated 03.08.2010 in S.T.No.813/2009 of the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench at Bangalore, the Revenue is in appeal. 6. The following substantial question of law, as re-framed by us, arises for consideration in this appeal: "Whether the Tribunal was right in extending the benefit of Para 2.2.2 and 2.2.3 of the CBEC C....

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....propriate rate. 9. The parallel colleges in the State of Kerala were earlier not granted exemption as in the case of regular colleges affiliated to Universities. In Malappuram District Parallel College Association case(supra), a learned Single Judge quashed all the proceedings against the parallel colleges, as the levy of service tax for services rendered by parallel colleges would indirectly fall on the students. By providing exemption to regular affiliated Universities allowing the students therein to study free of tax, such a levy was found to be patently discriminatory and violative of Article 14 of the Constitution. 10. Section 65(27) of the Finance Act, 2003 reads thus: "(27) "Commercial training or coaching centre" mea....

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....Circular reads thus: "Certain doubts have been raised in case of commercial 2.2.3 coaching and training. In this regard, the following is clarified: xx xx Whether service tax is leviable on institutes providing commercial coaching in addition to recognized degree courses: Some institutes like colleges, apart from imparting education for obtaining recognized degrees/diploma/ certificates, also impart training for competitive examinations, various entrance tests etc. It is clarified that by definition, such institutes or establishments, which issue a certificate, diploma or degree recognized by law, are outside the purview of "commercial training or coaching institute". Thus, even if such institutes or establishments provide....