TaxTMI 
TaxTMI 
2019 (4) TMI 183
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.... they are required to pay service Tax on the amounts received for long duration courses. 2.1 He pointed out that one notice was issued for the period 2009-2010 to 2013-14 invoking extended period of limitation. The second notice has been issued within the period of limitation for the financial year 2014 - 2015. Ld. Counsel pointed out that the primary allegation in the SCN is that there long duration courses are not recognized by AICTE. Ld. Counsel pointed out that recognition by AICTE is not a necessary pre-condition for exemption from the Service Tax. 2.2 Ld. Counsel pointed out that Section 65 (26) of the Finance Act, 1994 defines Commercial Training or Coaching in the year 2003 as under:- "Commercial training or coaching" means any training or coaching provided by a commercial training of coaching center. He further pointed out that Section 65 (27) of the Finance Act defines 'Commercial Training or Coaching Center' as follows: "Commercial training or coaching center" means any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any field other than sports, with or without issuance of a certificate an....
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....ing center'. Many service providers argue that the word commercial appearing in the aforementioned phrase, suggests that to fall under this definition, the establishment or the institute must be commercial (i.e. having profit motive) in nature. It is argued that institutes which are run by charitable trusts or on no-profit basis would not fall within the phrase 'commercial training or coaching center' and none of their activities would fall under the taxable service. This argument is clearly erroneous. As the phrase 'commercial training or coaching center' has been defined in a statute, there is no scope to add or delete words while interpreting the same. The definition commercial training or coaching center has no mention that such institute must have 'commercial' (i.e. profit making) intent or motive. Therefore, there is no reason to give a restricted meaning to the phrase. Secondly, service tax, unlike direct taxes, is chargeable on the gross amount received towards the service charges, irrespective of whether the venture is 'profit making, loss making or charity oriented' in its motive or its outcome. The word "Commercial" used in the phrase is with reference to the activity of....
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....ng centre. In a sense, the exemption which was earlier granted to all coaching and training given by institutes which were, interalia, providing Certificate or diploma or degree or any educational qualification recognized by law, was narrowed down and restricted to only those commercial coaching and trainings leading to grant of certificate or diploma or degree or any educational qualification recognized by any law. Therefore, while earlier for identical courses provided by two different institutes could be treated differently for the purpose of levy of service tax, w.e.f. 01.05.2011 the said distinction was removed by making the exemption course specific instead of institute specific. 2.6 Ld. Counsel for the appellant pointed out that IIM was set up in 1961 by a Cabinet Note of Govt. of India as an autonomous body and out of the regulatory fold of the Govt. of India. He pointed out that AICTE came into existence in 1968. He further pointed out that since IIM is not under UGC, therefore, the educational qualifications granted by them are called diplomas. Ld. Counsel relied on the decision of the Tribunal in the case of ITM International (P) Ltd. 2017 (7) GSTL 448 (Tri. Del.) He ....
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....our Institute in terms of university degree was considered by the Equivalence and the Standing Committees of this Association at their meetings held on 29thSeptember, 1975. The following resolution was adopted: "Resolved to equate the 'Fellow in Management' of the Indian Institute of Management, Ahmedabad as equivalent to Ph.D. degree in management awarded by Indian Universities."" 2.7 Ld. Counsel also relied on report of AICTE Review Committee, 2015 wherein following has been observed with reference to the appellant: • "AICTE does not enjoy a constitutional status. • ... • ... • ... • ... • ... • ... • ... • ... • ... • Although the AICTE was intended under the statute to be the apex national agency to promote a coordinate and integrated development of technical education at all levels throughout the country, in practice it was never empowered in this behalf. Government itself exercised the powers of the national agency promoting the coordinated and integrated development of technical education in the country. In created autonom....
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....ns on any subject 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;" The service was defined as follows: "(zzc) to any person, by a commercial training or coaching centre in relation to commercial training or coaching;" In the Finance Act, 2010, the following explanation was inserted in the sub clause zzc of Section 65(105) of the Finance Act 1994. "(b) in sub-clause (zzc), the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2003, namely :-- 'Explanation.- For the removal of doubts, it is hereby declared that the expression "commercial training or coaching centre" occurring in this sub-clause and in clauses (26), (27) and (90a) shall include any centre or institute, by whatever name called, where training or coaching is imparted for consideration, whether or not such centre or institute is registered as a trust ....
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....nance Act, the term 'Commercial Training or Coaching Centre' would cover all trainings centers giving training for a consideration irrespective of the profit motive of the center. This change was given retrospective effect from 01.07.2003. 4.2 In the Finance Act 2012, the negative list prescribed under Section 66D of the Finance Act following was included. "(l) services by way of- (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course; (m) services by way of renting of residential dwelling for use as residence;" 4.3 The Revenue had changed its stand. Earlier only the 'Commercial Concerns' were taxable, however, the commercial nature of training was sought to be made taxable by Circular No. 107/01/2009-SC dated 28.01.2009. This change was later given effect by the amending Finance act, 1994 with Finance Act, 2010. This amendment was given retrospective effect from 01.07.2003 by insertion of explanation in the sub clause zzc of Clause 105 of Secti....
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....' leading to qualifications 'recognized by law' are exempted (upto 01.07.2012) and in the same fall under negative list thereafter. Thus the SCN is not sustainable as there is no allegation that the coaching or training provided by the appellant is not recognize by law. Non recognition by AICTE is not the same as non recognition by law. 5.2 The appellants have claimed that they were involved in providing coaching or training leading to grant of an educational qualification recognized by law during this entire disputed period. Thus, the appellants have claimed that upto 01.05.2011, since they were providing education recognized by law, they do not fall under the definition of 'commercial coaching or training center' and thus no liability of service tax can be fastened on them till 01.05.2011. They have further contended that after 01.05.2011 all the educational training leading to grant of a qualification recognized by law would not be chargeable to service tax. They have contended that in respect of education other than that leading to grant of a qualification recognized by law they are paying service tax. 6. We find that revenue has argued that the letter dated 14.02.2017 of....
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....he scope of the circular and the same is binding on all the field formations", and has chosen to follow the Board's circular No. 107/01/2009-S.T., dated 28-1-2009. Apart from the fact that such Board's circulars are not required to be followed blindly by the adjudicating authority, unless they are in favour of the assessee, I also note that said circular does not clarify the said issue. The same interprets the term "recognized by law for the time being in force" as a degree/diploma/certificate specifically recognized by statutory authorities such as UGC/AICTE. UGC grants recognition to universities and deemed universities under Section 2(f) and Section 3 of the UGC Act, 1956, and is not a body to grant recognition to any certificate or degree or education or any educational qualification. As per Section 2(f) of the University Grants Commission Act, "University means a University established or incorporated by or under a Central Act, a Provincial Act or a State Act and includes any educational institute as may, in consultation with University concerned, be recognized by the Commission in accordance with the regulations made in this behalf under the Act. As such, it is seen that UGC ....
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....ian Universities. 7. It is also clear that IGNOU vide Notification dated 22-2-2008 notified that B.Sc. (Hon.), degree in Business and Management Studies of University of Bradford, accredited university in UK, is recognized for purposes of admission to post-graduate programmes University of Delhi by letter dated 11-6-2010 recognized the same course as equivalent to the under-graduate (Hon.) degree of the University of Delhi for the purpose of admission to post-graduate courses by the said university. 8. The Tribunal while examining a similar dispute in the case of M/s. ITM International Pvt. Ltd. vide Final Order dated 11-9-2017 [2017 TIOL 3645 CESTAT, Delhi = 2017 (7) G.S.T.L. 448 (Tri.)] held that Ministry of HRD vide Notification dated 13-3-1995 stated that the Govt. of India had decided that those foreign qualifications which are recognized/equated by the AIU are treated as recognized for the purpose of employment services under the Central Government. No separate orders for recognition of such foreign qualification is needed to be issued. The Tribunal also noted that UGC had advised Indian students to ascertain information regarding equivalence of the degrees and diplomas....
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....n by the DGCA to certify the repair, maintenance or airworthiness of an aircraft and for which purpose a further examination to be conducted by the DGCA is to be taken, in our view mixes up and confuses, 'qualification' with 'a license to practice on the basis of that qualification'. An educational qualification recognized by law will not cease to be recognized by law merely because for practicing in the field to which the qualification relates, a further examination held by a body regulating that field of practice is to be taken. Immediate instance can be given of the qualification in the field of law. Though by amendment of the recent years, the right to practice law on the basis of the said qualification has been made subject to clearing/passing a Bar Exam to be held by the Bar Council of India, the same does not make the qualification of law not recognized by law. The recognition accorded by the Act, Rules and CAR supra to the Course Completion Certificate issued by the Institutes as the petitioner cannot be withered away or ignored merely because the same does not automatically allow the holder of such qualification to certify the repair, maintenance or airworthiness of an air....