TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 11
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....Ker.), where batch of writ petitions were filed by parallel colleges and their associations questioning the constitutional validity of levying of service tax treating parallel colleges as "Commercial Training or Coaching Centre" within the meaning of Section 65(27) of the Finance Act. The learned Single Judge held that parallel colleges/educational institutions conducting any course, which is a requirement to write examination to obtain degree or certificate awarded by any agency created by law is entitled to exemption under the definition Clause 65(27) of the Act and hence, they are not liable to pay any service tax. The observations of the High are quoted below:- "4. The next question to be considered is whether the definition clause contained in Section 65(27) of the Act which makes the service rendered by the petitioners taxable under Section 66 (105)(zzc), is discriminatory and violative of Art. 14 of the Constitution of India. It is a settled position by series of decisions of the Supreme Court that taxing provisions should stand the test of constitutional validity with reference to Art. 14 of the Constitution of India also; see Federation of Hotel And Restaurant v. Union o....
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....oners pointed out that many brillient students who could not afford to go to regular colleges after study in parallel colleges have secured high ranks in the examinations conducted by the Universities. Therefore in most cases, students landing in parallel colleges are the less fortunate ones who are compelled to join parallel colleges for economic reasons. It is worthwhile to note that the State Government after appreciating these realities have granted the same concession in bus fare granted to regular college students, to students in parallel colleges also. Financial benefits are provided to students from SC and ST community studying in parallel colleges also. Therefore, the State Government also treats the students in affiliated colleges and parallel colleges as part of the same class. In any case there can be no distinction between students undergoing private study in the parallel colleges and those undergoing course study in the regular colleges, so long as the curriculam, the examinations written and the degrees obtained by them are one and the same. So far as the teaching staff rendering coaching rendered is concerned, it is common knowledge that appointments in private coll....
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....vice tax. In the circumstances, it has to be assumed that the State Government is also in favour of exemption to the parallel colleges in the same way granted to regular colleges under the exemption in the definition clause. In view of the above findings, I hold that the impugned provisions of the Act authorising levy of service tax on parallel colleges are arbitrary and violative of Art. 14 of the Constitution of India. However, I make it clear that the judgment is rendered on the peculiar facts applicable to parallel colleges in Kerala and this is not to be treated as declaring the Section unconstitutional in so far as any other category of educational institution or training centre is concerned. The impugned proceedings in all the WP Cases are quashed and respondents are prohibited from demanding registration or service tax for the services rendered by petitioners, their members and other parallel colleges in Kerala. W.Ps are allowed as above." (Emphasis laid) 3. The learned Division Bench of the Kerala High Court in the case of Commissioner of Central Excise, Service Tax & Customs Vs. M/s. Tandem Integrated Services -2019 (3) TMI 1440 (Kerala High Court) noted that the decis....
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....consider the cases of other parties on their own merits accordance with law. The appeals are accordingly dismissed." 6. In essence, the order of the Apex Court does not support the case of Revenue except to the limited effect to examine other cases on their merit. The subsequent decision of the Tribunal in the case of Asian Schools of Media Studies (supra) was not related to the State of Kerala, however, the issue considered was whether the appellants therein, who were conducting professional/vocational training courses were liable to pay service tax under the Head "Commercial Coaching or Training Services". Noting the observations in the impugned order that the appellant therein did not have the authority to issue certificate/degree/diploma, it was observed that, "the students to whom education and training was imparted by the appellant have received degree/diploma/certificates issued by the respective universities. Further, it was held that the only requirement is, that the course being taught should be part of curriculum, leading to grant of degree/diploma recognized by the law". 7. In the case of M/s. Central I.T. College (supra), the Kolkata Bench of the Tribunal where the a....
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.... B.Sc in Multimedia & Animation, which are delivered through structured course work facilitated at the appellant's premises. Pursuing to an audit conducted by the office of Service Tax Department for the period 2005-06 to September, 2011, 4 show cause notices were issued to the appellant. The allegation in the show cause notice was that the services rendered by the appellant under the head "University Courses" were liable to service tax as per the provisions of Section 65(105)(zzc) read with Section 65(26) and Section 65(27) of the Act. On adjudication, the impugned order [Order-in-Original No.14-17/Commissioner/Fbd/ST/2013 dated 28.03.2014] confirmed the demand observing that the appellant does not issue any degree/diploma or certificate recognized by law, itself but the same is issued by SMU and MSU and as such the benefit of Notification No.10/2003-ST dated 20.06.2003 and 33/2011-ST dated 01.05.2011, as amended is not available to the noticee. Hence, the present appeal has been filed. 11. We have heard Ms. Prem Lata Bansal, Sr. Advocate, Ms. P.L. Bansal, Sr. Advocate and Shri Shivang Bansal, Advocates for the appellant and Shri Shashank Yadva, learned Authorised Representative ....
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....itive examinations as well. The decision of this Court in Malappuram District Parallel College Association (supra) would squarely apply to the respondent-firm, since they are imparting coaching for courses leading to recognised certificates, diplomas and degrees issued by lawfully constituted academic bodies. Hence when such institutes also carry on training schedules to prepare students for competitive exams, categorised as "commercial coaching"; as per the clarification issued by the CBCE, they stand exempted." 14. The appellant is in the nature of a parallel college and the courses offered and conducted at their centre is recognised by law leading to the issuance of certificates, degrees and diplomas which are awarded by the universities to the students. Following the decisions referred to, the appellant cannot be said to be engaged in providing "Commercial Training or Coaching Service". The impugned order is, therefore, bad and needs to be set aside. 15. The learned Counsel for the appellant has referred to the Circular No.59/8/2003-ST dated 20.06.2003, which clarified that exemption from service tax shall be available to such institutes which imparts education for obtaining ....