TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 966
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....ntation 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 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. Industrial training, apprenticeship and other skill development responsibilities were officially transferred from the MoL&E to MoSD&E. 5. During the material period, the appellant entered into a MOU with EdCIL (India) Ltd. dated 10.07.2012 for jointly undertaking education and human resource development projects including information technology training and skill test certification related projects in various states in India. The MOU details the scope of both the parties and states that it w....
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....sued by Govt. of West Bengal. The appellant had no control over selection of trainees. Such Training was provided only to trainees selected by the Govt. Undertakings. The appellant did not provide training to any other trainee. The appellant neither had any control over deciding the curriculum of the vocational course/skill development course or MES courses, which were all designed by National Skill Development Agency (NSDA) under Ministry of Skill Development and Entrepreneurship, Govt. of India. The appellant also did not collect any fees directly from any trainee but from EdCIL. The Vocational Course/Skill Development Course or MES courses were funded by the various Govt. Department (Central Govt. or State Govt.) and entire course fees were received by the appellant through EdCIL (India) Ltd. as per the revenue sharing agreement (MOU). The Regional Director, Regional Directorate of Apprenticeship Training, Eastern Region, Govt. of India, after successful completion of training and assessment, awarded Certificates to the trainees on behalf of NCVT that bore specific headlines confirming NCVT certification. 7. The appellant had undertaken correspondences with the Department see....
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....submits that Sl. 9A of the Notification No. 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 ....
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....ons must be interpreted purposively. Where 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) o....
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....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 directorate. (x) Thus, the appellant submits that the impugned order is liable to be set aside on this ground also. III. Extended period of limitation is not invocable. (i) The appellant categorically submits that there is no suppression of facts or intention ....
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....vant portion of the said Notification is reproduced below: - "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." (Emphasis supplied) 13.1. 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 underof Sl. No. 9A of Notification No. 25/2012-S.T. dated 20.06.2012. 13.2. In su....
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....d by the Assessing Body mainly from the Industry organizations. NCVT issues certificate of skills acquired through informal means/competence assessed. ..... 5. Introduction to Skill Development Initiative Scheme (SDIS) Hon'ble Minister of Finance during the budget speech in 2005-06 made the following announcement: "To meet the demand for specific skills of a high order, a Public Private Partnership between Government and Industry is proposed to promote skills development program under the name 'Skill Development Initiative....." Accordingly, Ministry of Labour & Employment undertook development of a new strategic framework for skill development for early school leavers and existing workers, especially in the un-organized 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 leve....
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....iative Scheme (SDIS) based on Modular Employable Skills" is approved by the Ministry of Labour and Employment, Government of India. The appellant has undertaken this programme asa training partner approved by the National Skill Development Corporation and therefore, I find that the appellant are eligible for the exemption from payment of service tax as provided underof Sl. No. 9A of Notification No. 25/2012-S.T. dated 20.06.2012. 16. I find that a similar issue has already been dealt with by the Tribunal at Hyderabad in the case of SRK Innovatives School of Information Pvt. Ltd. v. Pr. Commissioner of Central Tax, Visakhapatnam, G.S.T. [2025 (5) TMI 262 - CESTAT, Hyderabad]. The relevant observations of the Tribunal in the above case are reproduced below: - "11. Even though, the impugned order is not sustainable on the ground as discussed, supra, we have also examined 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 admiss....
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....jects/schemes were in relation to skill development programme implemented by different Central Government/State Government and other agencies, no evidence/documents/information was provided to show that these projects were covered under the eligible category of the exemption i.e. projects/schemes in relation to any of the services specified viz. National Skill Development Programme implemented by NSDC, or a vocational skill development course under the National Skill Certification and Monetary Reward Scheme besides any other scheme implemented by NSDC. 14. The Adjudicating Authority also doubted the credential of the appellant for claiming the benefit of the notification on the ground that all the work orders for skill development are in the name of M/s Datapro Computers Pvt Ltd., and not in their name and both being two different legal entities, it cannot be said that appellant has provided computer training under the 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 bor....
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....m of appellant that they have provided skill training in terms of over 21 projects/schemes can also not be brushed aside as these schemes also have skill development component. 16. We find that it is on record that the appellants have provided certain skill training including computer literacy etc., to upgrade the skill of the students and making them ready for employment. This is not being disputed that they were not running a training organisation and they had never provided any skill upgradation training to student making them adaptable and ready for employment. It is also not in dispute that though M/s Datapro and the appellant have jointly taken concessional loan/funds and assistance from the NSDL, it is the appellant who has actually provided the service of skill development. As already pointed out that Datapro had a back-to-back MoU with the appellant to provide certain skill upgradation training in terms of various orders placed 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 comp....
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....concessional rate of interest only for the purpose of skill development or building training capacity consistent with their objective to partner with Central and State Governments for creating and developing favourable eco system for skill development. In the present appeal, from the loan agreement itself it is apparent that the soft loan has been extended, for specific skill development programmes to be conducted by the appellant. Various other documents submitted, including the one where the order is from the State Government of Bihar, show that they were imparting skill upgradation training as a part of NULM. It is also observed that NSDC is engaged in implementing the skill development component of various schemes run by different ministries. Thus, holistically considering the objective for creation of NSDC and it's role, it would be obvious that the loan was provided for skill development programme only and was in relation to schemes being implemented 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 woul....
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....nd exempted under Section 66D(l)(iii) of Finance Act, 1994 and hence the said services are specifically excluded from the purview of Service Tax. As the services rendered by the appellant are exempted in terms of Notification No. 25/2012-S.T. dated 20.06.2012 [Sl. No 9A], I am not discussing this ground raised by the appellant. 18. I also observe that the appellant has contested the demand on account of limitation. It is the appellant's submission in this regard that they have not suppressed any information from the Department and all transactions were duly recorded in their books of accounts, which were open to inspection by the Departmental authorities at all times. The appellant also pointed out that they had been in correspondence with the jurisdictional Range Office seeking clarification on the issue. In this regard, the appellant has referred to the letter dated 05.08.2013 addressed to the Superintendent, Malda Range seeking clarification as to the liability to Service Tax on the said services and the reply thereto, which are extracted below for the sake of ready reference: - 18.1. From the above, I find that the appellant had sought clarification on the issue vide thei....
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.....I.T. Authorized Near 1 No. Govt. Colony, P.O. & Dist. - Malda, Pin - 732101, West Bengal. Ph. : +91-7407462409/+91-9563377994 · Fax : (03512) 223744 · E-mail : [email protected] Ref No. Date RCIT/MLD/ST/2013-14/71 Date :05.08.2013 To The Superintendent Custom & Central Excise Government of India, Ministry of Finance Department of Revenue Maheshmati Near NCC Office Malda Range, Malda. Sub : Regarding Service Tax on Vocational Education/Training courses. Respected Sir, With due respected that I, Biswajit Dutta, Partner of RCIT, 1 No. Govt. Colony, P.O. & Dist .- Malda. As per circular No. 164/15/2012-ST --- the Clarification has been sought in respect of levy of service tax on certain vocational education/training/skill development courses (VEC) offered by the Government (Central Government or State Government) or local authority themselves or by an entity independently established by the Government under the law, as a society or any other similar body. In this fact I want to know you that VEC is exempted from service Tax? Please If possible the above mention circular clarification to me and oblige. Thanking you Yours faithfully Birg....