AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (7) TMI 687
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....ining & Coaching and Work Contract Service along with other services as a non- profit organization, to work as an international centre of excellence in horticulture. Their objective was to equip the grower trainees with practical skills and innovative technological inputs in order to improve the quantum and quality of marketable produce. An inquiry was initiated against the appellant on the grounds that they were not paying service tax on the services being provided by them. During the inquiry, the statement of Dr. Sangita Ladha, Director of the appellant was recorded on 17th January 2012 wherein she stated that their centre was registered as a Society and was involved in imparting training to various clients, including Horticulture Officers of the State Agriculture & Horticulture Department and other Government Bodies, Scientists, Students, farmers etc., and in research related to horticulture and its related activities. They had obtained Service tax Registration under Commercial Training and Coaching, Scientific and Technical Consultancy and Works Contract Services. However, they were paying service tax on Works Contract Service only, on the amount received towards the orders for....
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.... 3. The Learned Counsel for the appellant submitted that the impugned order has confirmed the demand of service tax of Rs.42,00,910/- on the total value of Rs. 4,02,05,286/- with respect to the training imparted by the Appellant under the category of "Commercial Training or Coaching Services" and the same has been confirmed without taking into account the correct nature of receipts. From perusal of the receipts, he submitted that it was evident that out of total receipts of Rs.4,02,05,286/-, receipt only to the extent of Rs. 3,67,81,896/- was towards the actual training of various personnel. Hence, the remaining amount is not taxable under the category of 'Commercial Training or Coaching Services'. Further, the learned Counsel submitted that the demand of service tax on Rs. 3,67,81,896/- was not sustainable as the 'Training services' provided by a vocational training institute were exempt till 26.2.2010. He drew attention to Notification No. 24/2004-ST dated 10.9.2004 whereas an exemption was provided to 'Commercial Training or Coaching Services provided by a vocational/recreational training institute. The said notification was further amended by Notification No. 3/201....
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....Customs, Central Excise & Service Tax, Noida, [2018 (10) TMI 1007-CESTAT ALLAHABAD]; (iv) Centre for Research & Industrial Staff Performance vs. CGST, Bhopal, 2019 (22) GSTL 385 (Tri. - Del.)]; (v) Madhya Pradesh Consultancy Organisation Ltd. v. C.C.E., Bhopal, [2017 (4) G.S.T.L. 100 (Tri. - Del.)] In view of the above submissions, he contended that the demand of service tax confirmed under the category of 'Commercial Training or Coaching Services' was not sustainable. 3.3 The learned counsel further submitted that the impugned order has confirmed the demand of service tax of Rs. 25,34,202/- with respect to the execution of greenhouse projects and other projects under the category of 'Works Contract Services' after denying the benefit of Composition Scheme availed by the Appellant. The impugned order had denied such benefit on the ground that neither the actual value of goods was provided by the appellant nor an advance intimation about opting for the composition scheme. In this regard, he submitted that the impugned order had accepted that the Appellant has rendered 'Works Contract Service'. To such an extent, there is no dispute. The dispute pertains lim....
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....rticulture which is for the educational/academic purpose. Thus, the same falls outside the purview of 'mandap keeper services'. 3.5 The learned Counsel further contended that the impugned order has confirmed the demand of service tax of Rs. 21,73,714/- on the foreign remittances made by the Appellant to M/s. Stitching PTC Netherlands for providing training to the trainers/managers sent by the Appellant to Netherlands, under the category of 'Commercial Training or Coaching Services'. He contended that there is a computational error in the taxable value taken i.e. instead of Rs. 2,46,536/-, the value has been taken as Rs.24,65,336/-. Further, the impugned order had demanded service tax under this category in terms of Section 66A of the Finance Act i.e. import of services. In this regard, he drew attention to Taxation of Services (Provided from Outside India and received in India) Rules, 2006 ("Import of Service Rules") which bifurcates all the services into three different categories based on the nature of such service. Rule 3 of Import of Service Rules provides that the services of Commercial Training or Coaching Services' are performance-based services i.e. the place of pe....
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....vide [2010 (20) STR J117 (S.C.)]; b) Maruti Suzuki India Limited vs. CCE, Delhi, [2019 (21) GSTL 24 (Tri. - Chan.)]; and c) Jai Research Foundation vs, CCE & ST, Vapi, 2019 (25) GSTL 473 (Tri. - Ahmd.) 3.7. On the issue of demand of service tax on the operational expenses received from M/s. DCM Shriram Consolidated Limited the Impugned Order has confirmed the demand of service tax of Rs.22,24,800/- on the operational expenses of the Appellant incurred by M/s. DCM Shriram Consolidated Limited under the category of 'Scientific or Technical Consultancy Services', the ld counsel submitted that the entire basis of such demand in both the SCN as well as Impugned Order is the selective reliance on one of the clauses of the Memorandum of Understanding (MoU) entered between the Appellant and M/s. DCM Shriram Consolidated Limited. He submitted that from the MoU itself, it is evident that M/s. DCM Shriram Consolidated Limited would be bearing the staff and operational expenses of the Appellant, being the third founding member of the Appellant. He stated that no service tax can be levied without identifying as to how a particular activity would fall under a particular category of ....
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....tion Rules, 2007 has to be read under the presumption that option has been exercised before the due date of payment of service tax. Once the due date of payment of service tax is crossed, the right to exercise the option under Rule 3(3) of said rules lapses. iii) On the issue of non-payment of service tax under Mandap Keeper Service, the learned AR submitted that the appellant had argued that the premises was provided on rent not to earn profit but for organisation of seminars to enhance the horticulture activity, but the Adjudicating Authority had held that there was no exemption under any notification regarding providing of premises on rent for organisation of seminars to enhance the horticulture activity and furtherance of agriculture. Therefore, the activity of appellant for allowing their premises for seminar or other function to the clients on consideration is classifiable under Mandap Keeper, hence is taxable. iv) On the issue of non-payment of service tax under Commercial Coaching and Training Services and services of Designing business and master plan under reverse charge, the learned Authorized Representative stated that a foreign based company namely M/s.PTC+, the Neth....
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....anner as provided in law. Had the department not initiated the inquiry against the appellant, the fact of evasion of service tax would not have come into the knowledge of department. Hence the appellant has wilfully suppressed the facts of providing taxable service and non-payment of service tax thereon from the department thereby contravened the provisions of Section 66, 67 and 68 of the Finance Act, 1994. Keeping in view all the facts, impugned order is prayed to be upheld and appeal to be dismissed. 5. Heard both the sides and taken into consideration the submissions made. The issues before us for consideration are as follows: (i) Liability of service tax on trainings imparted by the appellant under the head Commercial training or Coaching service; (ii) Eligibility of composition scheme under Works Contract Service (iii) Service Tax on Mandap Keeper services (iv) Liability of service tax under Reverse Charge Mechanism on foreign remittances (v) Liability of service tax on Scientific & Technical Consultancy received by the appellant (vi) Liability of service tax on Grants-in-aid We take up each issue for consideration. 6. Commercial Training or Coaching services: I....
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....(SC)], wherein it upheld the Tribunal's order that grant-in-aid received from the Government for implementation of schemes were fully utilised for the said activity and no consideration was received for any service to the government, was not taxable. We find that in the instant case, the grant-in-aid had been received from the government for the scheme and is therefore squarely covered by the aforesaid decision. 6.2 We now address the arguments of the ld counsel and ld AR regarding the confirmation of demand of the training/coaching services provided by the appellant. The ld counsel for the appellant has submitted that Training services provided by a vocational training institute were exempt till 26.2.2010. In this regard, it would be appropriate to reproduce the provisions hereinafter to appreciate the submissions. "Section 65(26)-"commercial training or coaching" means any training or coaching provided by a commercial training or coaching centre: "Section 65(27) "commercial training or coaching centre" means any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports with o....
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....ind that in the impugned order, the adjudicating authority has applied the amended definition of vocational training institute for the period prior to the said amendment. We note that in a similar issue in case of Canan School of Catering of Hotel Management [2019 (22) GSTL 61 (Tri. Chennai)], the Tribunal observed as under:- "6. The only dispute is applicability of the Notification No. 9/2003, as amended. We note that the original authority examined the scope of exemption in the context of amendment carried out in 2010. In 2010 amendment statutorily changed the scope of exemption, restricting the same specifically to the work and trade as recognized by the Apprentice Act, 1961. We note that the present dispute relates to the period which is before 2010. While we hold that the appellants are engaged in providing Commercial Training or Coaching, the courses offered are of such nature which is recognized as vocational courses in a particular area of specialization. It is also a fact that these are not academic courses like PGDM/MBA which were examined by the Tribunal in Great Lakes Institute of Management Ltd. - 2013 (32) S.T.R. 305 (Tri.-LB) and Sadhana Educational & People Dev. S....
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....dated 27.02.2010. As regards the demand for the subsequent period, we hold that the same would be taxable. However, the demand would be restricted to the normal period only. 7. Works Contract Service: We now take up the second issue for consideration. The impugned order has confirmed the demand of service tax of Rs. 25,34,202/- with respect to the execution of greenhouse projects and other projects under the category of 'Works Contract Services' after denying the benefit of Composition Scheme availed by the Appellant. We find that the impugned order has not denied that the appellant had rendered 'Works Contract Service'. The dispute pertains limitedly in respect of the extension of benefit of the composition scheme without prior intimation to the Department. It has been submitted before us that the computation of demand is incorrect. It was also contended that the service tax in respect of works contract services has already been paid by the appellant by availing the composition scheme. We observe that the impugned order has denied such benefit on the ground that neither the actual value of goods was provided by the Appellant nor an advance intimation about opting ....
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....lause, social function includes marriage. Section 65(105) "taxable service" means any service provided or to be provided, - (m) to any person, by a mandap keeper in relation to the use of mandap in any manner including the facilities provided or to be provided to such person in relation to such use and also the services, if any, provided or to be provided as a caterer;" From the above provisions, it is clear that for any service to be taxable under 'mandap keeper service', the immovable property has to be let out for organizing any official, social or business function. In the present case, it has been submitted before us that the property was let out by the Appellant for conducting the seminars on horticulture only which is for the educational/academic purpose and would thus, fall outside the purview of 'mandap keeper service' and hence, demand confirmed is not sustainable. We note that the appellant has received consideration under the head 'Booking of venue', which was let out for conducting seminars or other functions by their clients. It has been submitted that the appellant was registered as a Society and the aim was to enhance horticulture activity, and was not run for ....
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...., (zr), (zt), (zu), (zv), (zw), (zz), (zza), (zze). (zzd), (zzf). (zzg). (zzi), (zzl), (zzm), (zzo), (zzt), (zzv), (zzw), (zzx). (zzy), (zzzd), (zzze), (zzzf), (zzzzg). (zzzzh), (zzzzi), (zzzzk), (zzzzl) and (zzzzo) of clause (105) of section 65 of the Act, be such services as are performed in India:] Provided that where such taxable service is partly performed in India, it shall be treated as performed in India and the value of such taxable service shall be determined under section 67 of the Act and the rules made thereunder: Provided further that where the taxable services referred to in sub- clauses (zzg) and (zzi) of clause (105) of section 65 of the Act, are provided in relation to any goods or material or any immovable property, as the case may be, situated in India at the time of provision of service, through internet or an electronic network including a computer network or any other means, then such taxable service, whether or not performed in India, shall be treated as the taxable service performed in India; (iii) specified in clause (105) of section 65 of the Act, but excluding- (a) sub-clauses (zzzo) and (zzzv); (b) those specified in clause (i) of this rule ex....
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....tter. 10. Liability of service tax on Scientific & Technical Consultancy received by the appellant: We note that the impugned order has confirmed the demand of service tax of Rs. 5,38,952/- with respect to the activity of design of business & master plan undertaken by M/s. Stitching PTC Netherlands for the Appellant under the category of 'Scientific or Technical Consultancy Services'. The relevant provisions with respect to 'Scientific or Technical Consultancy Services are extracted as under:- "Section 65(92) "scientific or technical consultancy" means any advice, consultancy, or scientific or technical assistance, rendered in any manner, either directly or indirectly, by a scientist or a technocrat, or any science or technology institution or organization, to any person, in one or more disciplines of science or technology: Section 65(105) "taxable service" means any service provided or to be provided, - (za) to any person, by a scientist or a technocrat, or any science or technology institution or organization, in relation to scientific or technical consultancy;" 10.1 From the above, it is evident that advice/consultancy has to be rendered by a scientist or a t....