TaxTMI 
TaxTMI 
2026 (2) TMI 967
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....inst the above demand and also imposed penalty of Rs. 10,000/. Aggrieved by said order, present appeal is filed. 2. When the appeal came up for hearing, the learned Counsel for the appellant submits that the activity carried out by the appellant is providing computer training to students studying in Government Schools under 'Mahithi Sindhu Projects' besides undertaking maintenance of computers and peripherals etc. in terms of agreement entered with Commissioner of Public Instruction (CPI), Karnataka. The appellant provided such training to the students for which they received charges from the CPI out of 'grant-in-aid' provided to the latter by the Government. The activity is provided to the student free of cost. The learned Counsel further submits that the demand from August, 2009 to March, 2012 is beyond the show cause notice and there is no reason or justification to invoke the extended period of limitation. In this regard, the learned Counsel submits that the appellant had filed refund claim for Rs. 48,64,868/- for the year 2008-09 vide letter dated 19.02.2010 i.e. three years before issue of show cause notice. It was clear that the appellant had challenged the levy in the fi....
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....mented welfare schemes for the Central and State governments for the benefit of the poor or otherwise vulnerable/weaker sections of the society and collected grants-in-aid from the governments concerned. It is not in dispute that these grants-in-aid had been totally utilized for implementing the welfare schemes. Nothing over and above these grants-in-aid was received by the assessee from any of the governments. In other words, the assessee did not receive any consideration for "any service' to the governments. Therefore, we hold that, in the implementation of the Governmental schemes, the assessee as implementing agency did not render any taxable "service" to the government. The department seems to be considering the Governments to be "clients" of APITCO. The question now is whether there was "service provider-client" relationship between the assessee and the governments. Here, again, the nature of the amounts paid by the governments to the assessee is decisive. A client must not only pay the expenses of the service but also the consideration or reward for the service to the service provider. Admittedly, in the present case, there was no payment, by any government to the assessee, ....
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.... (S.C) d) Commissioner of CGST Customs and Central Excise Vs. Sunshine Steel Industries - (2023) 8 Centax 210 (S.C) e) Commissioner of CGST and Central Excise, Jabalpur Vs. Birla Corporation Ltd. - (2023) 11 Centax 133 (S.C) 7. The learned Authorized Representative (AR) reiterated the finding in the impugned order and submits that appellant is only a Public Sector undertaking of Karnataka Government and had entered into contract with Commissioner of Public Instruction (CPI) of Karnataka Government to impart computer education to teachers along with maintenance of computers and computer peripherals in 1011 allotted schools for a consideration besides maintenance of computers & computer peripherals. The renumeration is provided as per the grading of schools categorized into A, B & C grades. The activity of Appellant clearly falls under the ambit of 'Commercial Training or Coaching Service' under Section 65(105)(22c) towards their rendering of composite service. Learned AR further submits that the Appellant is a registered service tax assessee and discharged service tax from 2007-2010 without any protest. They however stopped discharging service tax for the later ....
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....charge of sovereign function. 9. Heard both sides. The period of dispute is from April 2009 to March 2012 and during this period the CBIC vide Circular No. 107/01/2009 dated 28.01.2009 clarified as reproduced below:- "4. Vocational Training Institute:- The vocational training institutes are exempted from service tax vide Notification No. 24/2004-S.T., dated 10-9-2004 (as amended). By definition, such institutes should provide training or coaching that imparts skill to enable the trainee to seek employment or undertake self-employment, directly after such training or coaching. Disputes have arisen in respect of institutes that offer general course on improving communication skills, personality development, how to be effective in group discussions or personal interviews, general grooming and finishing etc. It is claimed that such training or coaching improves the job prospects of a candidate and therefore they are eligible for exemption as 'vocational training institutes'. However, a careful reading of the definition shows that the exemption is available only to such institutes that impart training to enable the trainee to seek employment or self-employment. The c....