AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 1004
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....M. Group (hereinafter referred to as the "appellant") are engaged in providing vocational training and skill development services and are registered as a Vocational Training Provider (VTP) in the State of West Bengal, with the Director of Industrial Training, Govt. of West Bengal vide Registration No. 1906004. As per the registration documents dated 23rd December, 2011, the appellant was registered as a Vocational Training Provider (VTP) for implementation of Govt. of India's Skill Development Initiative (SDI) under Directorate General of Employment and Training (DGE&T), Ministry of Labour and Employment (MoL&E), Govt. of India. They provided NCVT-approved Modular Employable Skill (MES) courses. This Scheme (Skill Development Initiative (SDI) Scheme) is now under the Ministry of Skill Development & Entrepreneurship, Government of India. 4. The appellant was accorded approval to conduct training programmes under the Prime Minister's National Skill Development Mission, a new Ministry of Skill Development and Entrepreneurship (MoSD&E) initiative set up in the year 2014 to coordinate all skill development efforts across the country. 5. During the material periods i.e.,....
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....riod. 6. During the relevant period, the appellant was engaged in providing the following vocational education/training/skill development courses: a) Advance Diploma in Information Technology (ADIT) Vocational education/training/skill development courses provided through Employment Exchange (Labour Department), Government of West Bengal b) Bengali & English Typing with DTP and Certificate course in E-System Management-Vocational education/training/skill development courses provided through West Bengal Minorities Development & Finance Corporation (WBMDFC), Government of West Bengal c) Certificate in Rural Management (CRM), Diploma in office automation & Networking(DOAN) and Diploma in Information Technology & Networking (DITN) - Provided through Aliah University, Government of West Bengal d) Land Surveyor, Diploma in Bengali & English Typing with DTP, Driver Cum Mechanic and NIELIT "O" Level - Provided through Aliah University, Government of West Bengal 7. Based on TDS information received from Income Tax Department through inter-departmental information sharing system for the period 2014-15, it appeared that the appellant had earned/collected taxable income amountin....
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....9A of the Notification 25/2012-ST dated 20.06.2012 provides exemption to any services provided by, (i) The National Skill Development Corporation set up by the Government of India; (ii) a Sector Skill Council approved by the National Skill Development Corporation; (iii) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation; (iv) a training partner approved by the National Skill Development Corporation or the Sector Skill Council in relation to (a) the National Skill Development Programme implemented by the National Skill Development Corporation; or (b) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (c) any other Scheme implemented by the National Skill Development Corporation. (ii) As per Ministry of Skill Development & Entrepreneurship, Government of India, Every State have their State Skill Development Mission. The state of West Bengal have their Skill Development Mission in the name of Paschim Banga Society for Skill Development (PBSSD) and they have tie up with Sector Skill Council (SSC). (iii) In the present case, it is relevant to note that ....
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....here an entity contributes to the policy goals behind a tax exemption-such as skill development in this case-it should not be denied benefit merely due to technicalities or lack of direct documentation. The ruling affirms that where the intent and implementation of services are in line with exempted purposes, exemptions must be extended even through indirect linkages, recognizing both funded and non-funded partnerships with NSDC. (vii) Relying on the said ruling, the appellant submits that no Service tax is payable by the Appellant who acts as a training partner in line with the notification. II. The appellant's services fall squarely under "approved vocational education course" exemption under Section 66D(l)(iii) of Finance Act, 1994 and are specifically excluded from the purview of Service Tax. (i) The appellant submits that Section 66D of the Finance Act, 1994 provides the negative list of services which are specifically excluded from the levy of Service Tax. Section 66D(l)(iii) specifically excludes "education as a part of an approved vocational education course" from the definition of taxable service. (ii) Section 65B(11) of the Finance Act, 1994 defines "a....
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....conclusively establishes NCVT approval for all courses conducted by the appellant. (vii) Further, the nature of these services is further reinforced by the fact that the Government reimburses training costs to VTPs like the appellant. The approval letter confirms that "approved VTP has to submit Bank Guarantee as per prescribed format, if applicable. Reimbursement of Training Fee would be made only after receiving of Fund from DGE&T, Government of India." This demonstrates that the Government itself recognizes these as essential vocational education services deserving public funding support. (viii) Thus, it is submitted that the appellant's courses squarely fall within the definition of "approved vocational education course" under clause (ii), which covers "a Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Employment and Training." (ix) All three essential conditions are fulfilled: (a) the courses are Modular Employable Skill Courses, (b) they are approved by NCVT under the SDI Scheme framework, and (c) the appellant is registered with DGE&T through its state d....
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....gned orders and allowing their appeals. 11. On the other hand, the Ld. Authorized Representative of the Revenue reiterated the findings in the impugned orders. He also inter alia made the following submissions: - (i) The appellant was engaged in imparting education/training for skill development and trains the trainees in Computer Course on behalf of M/s Electronic Corporation of India Ltd., Aliah University, National Institute of Electronics & Information Technology (NIELT), CSC E-governance Services India Ltd. and received consideration. (ii) During adjudication, the appellant had only submitted a copy of the Certificate issued by the Directorate of Industrial Training, Bikash Bhawan, 10th Floor (North Block), Salt Lake City, Kolkata, regarding registration of VTP in the State of West Bengal under SDI Scheme. The content of the subject letter was that the approval of VTP registration under SDI Scheme was accorded to the institute of the appellant to conduct training programme in the approved courses as mentioned in enclosed List. Moreover, the appellant had not adduced any evidence in support of their claim which fulfils the conditions for availing the benefit of exemption....
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....he 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 is covered under this clause; but, training given by private coaching institutes would not be covered as such raining does not lead to grant of a recognized qualification. Therefore, the said clause is not applicable to the appellant. Hence, the contention of the appellant in this instant case is not sustainable. 11.1. Thus, the Ld. Authorized Representative of the Revenue prayed for upholding the demands confirmed vide the impugned orders. 12. Heard both sides and perused the appeal records. Service Tax Appeal No. 75950 of 2022 13. In this case, I observe that the appellant has inter alia entered into agreements with the following entities: - 1. Aliah University Recognized by UGC which is also a partner of National Skill Development Corporation (NSDC). 2. Modular Employable Skill (MES) Under Ministry of Labour, Government of India act as a Sector Skill Council (SSC). Course approved by NCVT under administrative control of Ministry of Skill Development and Entrepreneurship,....
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....ication and Monetary Reward Scheme; or (c) any other Scheme implemented by the National Skill Development Corporation." (Emphasis supplied) 14.1. From the above, it is evident that a training partner approved by the National Skill Development Corporation or the Sector Skill Council, undertaking course approved them are eligible for the exemption from payment of service tax as provided under of Sl. No. 9A of Notification No. 25/2012-S.T. dated 20.06.2012. 14.2. In support of their contention that the programme undertaken by them is approved by the Government, the appellant has produced the letter dated 30.12.2011 issued by the Director of Industrial Training, West Bengal to the appellant regarding Registration of VTP in the State of West Bengal under SDI Scheme. For the sake of ready reference, the said letter is reproduced below: - 14.3. From the above, I find that the programme undertaken by the appellant is approved by the Government and hence the activity undertaken by them is eligible for the exemption from payment of Service tax, as the said activity are covered under Sl. No. 9A of Notification No. 25/2012-S.T. dated 20.06.2012. 15. The appellant has also referre....
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.... sector in close consultation with industry. micro enterprises in the un-organized sector, State Governments, experts and academia which were essential considering their educational, social and economic background. 5.1 Progress of Skill Development Initiative Scheme (SDIS) Ministry of Labour and Employment launched Skill Development Initiative Scheme (SDIS) in May 2007. DGE&T at the national level issues the guidelines and provides funding and direction to the scheme whereas the implementation is carried out by the state government and regional institutions under Ministry of Labour and Employment in partnership with VTP and Assessing Bodies. The online implementation of the SDI scheme through web-portal was launched since 1st January 2012. During XI plan period (2007-12), against an approved outlay of Rs 500 crore, an amount of Rs 407 crore was spent and 13.67 lakh persons were trained or directly tested under the scheme. Till date 27.31 lakh of youth have been training / tested under SDIS. At present SDIS is being implemented by 9807 Vocational Training Providers and 104 Assessing Bodies. Cabinet committee on Skill Development has approved the continuation of this s....
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....amined the claim for eligibility under Notification No. 25/2012-ST dated 20.06.2012 (entry no. 9A). 12. We find that the Adjudicating Authority has gone through a great deal of effort in analysing the scope and the factual matrix before coming to the conclusion that the said exemption would not be admissible to the appellant. Before, we proceed further, the entry at Serial No. 9A of the Notification No. 25/2012-ST is reproduced below for ease of reference: 9A. Any services provided by;- (i) the National Skill Development Corporation set up by the Government of India; (ii) a Sector Skill Council approved by the National Skill Development Corporation; (iii) an assessment agency approved by the Sector Skill Council or the National Skill development Corporation: (iv) a training partner approved by the National Skill Development Corporation or the Sector Skill Council; in relation to (a) the National Skill Development programme implemented by the National Skill Development corporation; or (b) a vocational skill development course under the National Skill certification and Monetary Reward Scheme; or (c) any other scheme implemented by the National Skill De....
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....said project/scheme. 15. We have perused the Tripartite Agreement between NSDC on one hand and M/s Datapro Computers Pvt Ltd., (Datapro) and SRK Innovatives School of Information Pvt Ltd., (SRKISI) as other party, who have been jointly termed as borrowers. This is essentially a loan agreement for providing assistance on certain concessional terms in terms of interest, repayment etc., and for specific purpose. The assistance being provided by NSDC to these co-borrowers is essentially an amount advanced by NSDC to the borrowers as a soft loan and is linked to certain skill development programme and milestones based on number of trainees trained or employed. The scope of project for which this soft loan has been extended, interalia, is as under: "To uplift unemployed rural and urban youth pertains to BPL category viz. school/college dropouts, current students imparting skill training programs in retail & banking sectors and place them suitably so as to main their livelihood". This loan was for providing certain skills in relation to retail sector /banking/insurance and finance sector. Thus, it is clear that assistance /funding is intended for vocational training/skill de....
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....ced on them by various state governments under different schemes. For example, in the case of order provided to Datapro by Government of Bihar's Urban Development Housing Department, we find that this work is in the nature of EST and P component of National Urban Livelihood Mission (NULM). NULM is a scheme under the Ministry of central government (MOUD), where the execution is done through state governments. In addition to this, even the soft loan agreement with NSDC, jointly with Datapro and the appellant, also shows that the soft loan agreement is only for providing skill upgradation training which is adaptable to future employability of the candidates. It is not alleged that after taking the loan, the appellant had not carried out the activities as covered in the said loan agreement. 17. M/s NSDC is under the Ministry of Skill Development and Entrepreneurship (MSDE), who collaborates with State Governments and offer organisations to catalyse and accelerate the skill training course in the country. It's objective is to actualise capacity creation for vocational training by providing funding to support to the organisations that provide skill training. NSDC has developed....
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....ted by other Central Government Ministries and State Governments. Further, skill being imparted i.e. computer training etc., is definitely a vocational training also. Therefore, we find that plain reading of the notification would show that the intention is to exempt all the services provided by NSDC or by sector skill council approved by NSDC or by a training partner approved by the NSDC, in relation to, inter alia, any scheme implemented by NSDC. The rationale adopted by the Adjudicating Authority that since they do not have a certificate and that their name is not figuring in the list of partner shown on the website of the NSDC, it would in itself be a sufficient to treat them as not being an approved training partner is not correct when there is a provision for both types of partners, funded and non-funded. In this case, we find that the funding has been done by the NSDC by way of concessional loan for specified end purpose and therefore they would be in the nature of funded partner. Even if it is presumed that concessional loan is not actually a funding or assistance, it can be covered under the non-funded category. Incidentally, the term 'partner' has not been de....
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.... to Service Tax on the said services and the reply thereto, which are extracted below for the sake of ready reference: - 20. From the above, I find that the appellant had sought clarification on the issue vide their letter dated 05.08.2013 and to that letter, the Superintendent, Malda Range had replied that Service Tax is not leviable when a VEC is offered by the Government or local authority. Thus, it is evident from the above that the Department was well aware of the activity undertaken by the appellant. As the activity undertaken by the appellant was well within the knowledge of the Departmental authorities, I hold that there is no suppression of facts involved in this case. Thus, I find that the invocation of extended period of limitation is not sustainable. Consequently, I set aside the demand confirmed against the appellant by invoking the extended period of limitation. Consequently, no Service Tax is liable to be confirmed against the appellant, being barred by limitation. Service Tax Appeal No. 75699 of 2023 21. The issue involved in this appeal being identical to that in Service Tax Appeal No. 75950 of 2022, I hold that the appellant succeeds on merit, in view of the ....