TaxTMI 
TaxTMI 
2020 (9) TMI 1236
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....uthority for Advance Ruling, Andhra Pradesh. 1. Brief Facts of the Case: 1. The appellant is a coaching Institute providing coaching to the students appearing for the Intermediate, CA Foundation Course, CA, CMA. 2. The appellants also provide hostel accommodation and catering services to the students. 3. The appellant claimed exemption from service tax during the service tax regime under the serial No. 66D(1)(ii) of the Negative List up to 01.03.2016 and under the Notification No.25/2012-ST dated 20.06.12, as amended thereafter as 'Education Institution' as per the definitions provided in the respective provisions detailed above. 4. It is the case of the appellants that since their service is providing education as part of a curriculum for obtaining Chartered Accountant, Cost Management Accountant as an educational Institution, they were exempted. No service tax was levied earlier under the Service Tax or leviable there to under the Goods and Service Tax enactments. In the above circumstances the Appellant approached the Advance Ruling Authority-Andhra Pradesh for Ruling on the following queries: 1. Whether the services of 'supply of service o....
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....peaking order and passed with a revenue bias without considering any of the submissions made and numerous citations cited by the appellant in the application. The impugned order is also passed in violation of judicial discipline as the same is passed without considering the decisions from various Courts and without even distinguishing them. 2. The learned authority misread the definition of the term 'educational institution' given in Notification No.12/2017-CT (Rate) dt.28.06.2017 which brought educational services out of the purview of GST, if supply provided is (a) related to education (b) the education is provided is as a part of a curriculum and (c) the education is provided for obtaining a qualification recognised by any law for the time being in force. If any of these conditions is not satisfied, the appellant shall not qualify to be eligible for the exemption. The appellant had clearly explained in his application how he fulfils all the above conditions and the appellant's detailed submissions were even recorded in para 4.10 to 4.27 of the impugned order the appellant's detailed submissions were recorded. But they are not controverted by the authority whil....
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....ttending to examinations. This distinction though explained in the application by the appellant, the lower authority did not consider the same. 6. The ground taken by the learned authority to deny the exemption to the coaching imparted by the appellant is that the said coaching does not lead to grant of any certificate recognised by law and therefore, it is not an educational institution. This is both factually and legally incorrect. The coaching to all the courses viz., CA-Inter, CA-Final, ICWA-Final and ICWA-Inter and Intermediate education leads to grant of certificates duly recognised under the law. This had been clearly explained in the application. Further, as explained clearly in the application, granting of a certificate is not a condition in the said Notification to claim the exemption and this condition was existing prior to 2011. This submission also though made was not at all considered. The impugned order was clearly passed with pre-determined mind set. 7. The learned lower authority had given the findings in the order traversing beyond the definition and meaning provided in the statute. The authority misread and misinterpreted them without considering the submis....
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....its broadest sense the word comprehends not merely the instruction received at school, or college but the whole course of training moral, intellectual and physical; is not limited to the ordinary instruction of the child in the pursuits of literature. It also comprehends a proper attention to the moral and religious sentiments of the child. And it is sometimes used as synonymous with 'learning'." 9. The learned Authority erred in holding that since the appellant is not issuing any coaching completion certificate and since the student has the liberty to leave the institute, the appellant's institute cannot be considered as Educational Institution. This observation/ finding is not at all relevant while considering the exemption to the appellant. Once the appellant fits into the description of the term 'Educational Institution', other factors are irrelevant, as a student in a University can also discontinue his studies. The only relevant factor is that education imparted by the appellant is a part of curriculum for obtaining a statutory qualification. For this reason, a government college or university can also be held to be not an educational institution as stu....
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....nt of India through their letters issued from PF office and Employees State Insurance Corporation that they had already taken a view that the appellant's establishment is an "Educational Institution". The Hon'ble Advance Ruling Authority taking a contrary view is not in consonance with the Government's consistent stand and therefore liable to be rejected. 12. Prior to introduction of GST, Service Tax was exempted on the education provided by an 'educational institution'. The relevant extract of Notification No.25/2012-ST dt.20.06.2012 was re-produced in Para 8.4 to 8.5 of the impugned order. The wordings are exactly same in the case of Notification 12/2017-CT (Rate) dt.28.06.201.7 which granted such exemption in GST. The appellant was accordingly allowed the exemption during the Service Tax regime and the orders passed by the Commissioner of Service Tax was accepted by the committee of Chief Commissioners including one of the Hon'ble Members of this Appellate Authority. It is highly improper to deny the same under GST when identical exemption is provided that too when the adjudication orders passed in his favour were accepted by the Committee of Chief Com....
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....ching does not result in issue of any certificate and hence does not fall under the definition of the term 'educational institution' as per clause (ii) or (iii) of the said definition. The education provided to Higher Secondary Education is exempted even if the institution is not an educational institution since clause (i) of the definition does not mention about leading to grant of any qualification or certificate. Same is extracted below again for ready reference: '2(oa): Educational institution means an institution providing service by way of: Pre-school education and education up to higher secondary school or equivalent. 14. The Hon'ble Authority denied the exemption sought for in respect of accommodation referring to the Board Circular dt. 01.01.2019 and Entry No. 66 of the said Notification. The appellant referred to Board Circular dt.12.02.2018 while seeking the Ruling. Even if the appellant is not treated as an educational institution, there is no bar in granting exemption to the students for providing accommodation since the charges collected from them are less than Rs. 1000/- per day. This issue is not at all considered by the learned authority....
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....the following conditions are fulfilled: (a) The service provided should be is related to 'education'. (b) The education is provided as a part of a curriculum and (c) The education is provided for obtaining a qualification recognised by any law for the time being in force. 3. There is no other condition prescribed under the said Notification or in the GST Act. The appellant accordingly claimed exemption from service tax since the coaching provided by him is in relation to education provided to the students; the coaching is provided strictly following the curriculum prescribed by the concerned statutory institutions and the coaching is for obtaining a qualification recognised under law. The service tax department issued periodical show cause notices demanding service tax on the services on the grounds, inter alia, that the appellant was not issuing certificates to the students; that he is not recognised institutions etc., and hence not eligible for the exemption. These demands were subsequently dropped as far as coaching for Intermediate course, CA- Final and CMA- Final. The orders were accepted by the Committee of Chief Commissioners also and th....
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....and accordingly whether the exemption provided under Notification No.12/2017-CT (Rate). The appellant explained in his application filed before the learned Advance Ruling Authority: (a) Details of demands issued to him during the service tax regime, details of orders passed dropping demands by the adjudicating authorities, acceptance of the orders by the Committee of Chief Commissioners and granting of refund of the tax already paid. (b) Details of coaching he provides, the syllabus he follows as per the one prescribed by the statutory bodies, the qualifications the students obtain after passing the exams with the education provided by the appellant, along with relevant documents viz., certificates, curriculum etc.,. (c) How it falls within the four corners of the definition of the term 'educational institution' as per the principles of interpretation of legal provisions and notifications etc., (d) Copies of documents showing that he is recognised as an educational institution by other government departments. 9. The appellant had also submitted that the jurisdictional Tribunal (CESTAT) at Hyderabad in the case of Sri Chaitanya Educatio....
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....ded statements and collected all the documents from the appellants. All these documents are filed with the application. Same are filed again herewith for ready reference. The ARA had mentioned in the impugned order that he had conducted enquiry with state tax authorities and got are port that there is no enquiry pending with them against the appellant. In fact, even the state tax authorities also called for records from the appellant and stopped enquiry when it was informed that the issue is under investigation by DGGI. Section 98 (2) applies not only to the enquiry by the state tax authorities but even to the enquiry/ investigation being conducted by the central tax authorities. (b) The learned ARA himself admitted in the order in the first page itself that the appellant is a leading educational institution and the coaching provided by him enables the students to appear for the examinations conducted by respective statutory bodies and to obtain necessary qualifications. He cannot pass the order with conflicting statements. (c) The learned ARA himself mentioned that identical exemption is provided under GST regime and service tax regime. In such case, when the iss....
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....egrated Services 2019 (3) TMI 1440-Kerala High Court wherein it was held that there is no condition of recognition or issue of certificates etc., in the notification and hence the coaching imparted by coaching institutes for preparing the students for examinations for obtaining qualifications and hence service tax cannot be demanded. Relevant part of the decision is extracted below for ready reference: 11. "The argument of the learned Counsel for the Revenue is that the respondent is not a regular college which grants certificate, diploma or degree for any educational qualification recognised by law and would therefore, not come within the exemption under subsection (27) of Section 65 of the Finance Act, 2003. It was also argued that though parallel colleges were granted the same benefits as University affiliated regular colleges, the assessee herein has activities other than preparing students for University degrees, diplomas and certificates or those issued from institutes, legally recognised. The assessee prepares students for entrance tests, competitive tests for employment, etc., all of which are commercial in nature bringing it under the tax net. 13. The ass....
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....nt accordingly prays this Hon'ble Appellate Authority: (a) To quash the proceedings since they are against the Section 98 (2) of CGST Act, 2017 without going into merits of the case as the issue was under investigation by the central and state tax authorities. (b) To declare the order of the lower authority as illegal as the same is passed without considering the submissions made by the appellant and without considering various decisions from Hon'ble Supreme Court etc., (c) To set aside the order of the lower authority as the same is passed against the settled legal position. (d) To pass order declaring the appellant as an educational institution and (e) To pass such other order or orders as may be deemed fit in the interest of justice. 5. Discussion and Findings: We have gone through the entire submission made by the appellant along with the Ruling pronounced by the Authority for Advance Ruling. On perusal of the appeal and submission made by the appellant at the time of Personal Hearing, it is observed that the main issue of contention is whether the appellant is an educational institution or not. In order to resolve t....
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....to students of Chartered Accountancy course. As a part of the Scheme of Four Weeks Integrated Course on Information Technology and Soft Skills (ICITSS) consisting Course on Information Technology for Chartered Accountancy Course, a student has to mandatorily complete the Course on Information Technology from any of the ITT Centers established at Regional Offices/ Branches/ Chapters of ICAI before commencement of Practical Training. k) As a part of the Scheme of Four Weeks Advanced Integrated Course on Information Technology Training and Soft Skills (AICITSS) for Chartered Accountancy Course, a student undergoing practical training shall be required to do AICITSS during the last 2 years of practical training but to complete the same before being eligible to appear in the Final Examination. A student can complete the Course on Advanced Information Technology (AICITSS) from any of the ITT Centers established at Regional Offices/ Branches/ Chapters of ICAI. I) Similarly, ICMAI is the Institute of Cost Accountants of India (ICAI), which was previously known as the Institute of Cost and Work Accountants of India (ICWAI). There are three stages to be pursued to become a ....
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....e. It also connotes the whole course of scholastic instruction which a person has received. The word "education" has not been used in that wide and extended sense, according to which every acquisition of further knowledge constitutes education. According to this wide and extended sense, travelling is education, because as a result of travelling you acquire fresh knowledge. Likewise, if you read newspapers and magazines, see pictures, visit art galleries, museums and zoos, you thereby add to your knowledge. Again, when you grow up and have dealings with other people, some of whom are not straight you learn by experience and thus add to your knowledge of the ways of the world. If you are not careful, your wallet is liable to be stolen or you are liable to be cheated by some unscrupulous person. The thief who removes your wallet and the swindler who cheats you teach you a lesson and in the process make you wiser though poorer. If you visit a night club, your get acquainted with and add to your knowledge about some of the not much revealed realities and mysteries of life. All this in a way is education in the great school of life. But that is not the sense in which the word "education"....
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....ation as 'a part' of the curriculum that has been prescribed for obtaining a qualification prescribed by law. It is important to understand that to be in the negative list the service should be delivered as part of curriculum. Conduct of degree courses by colleges, universities or institutions which lead grant of qualifications recognized by law would be covered. Training given by private coaching institutes would not be covered as such training does not lead to grant of a recognized qualification Added to this, the Chartered Accountants Act as well as the Cost and Works Accountants Act, both clearly do not recognize the "education" imparted by Universities or affiliated bodies towards the award of any degree, diploma or certificate as given by such Institutes. In fact, such Universities and Bodies are not even permitted to use any name or nomenclature which is in any way similar to that of the said Institutes. In this context, Section 15 A of the Chartered Accountants Act, 1949 and Section 15 B of the Cost and Works Accountants Act, 1959 regarding imparting education by Universities and other bodies were incorporated in the respective Acts in the year 2006. The sections....