2007 (3) TMI 667 - AT - Service Tax

Summary

Issues involved: Interpretation of service tax exemption notifications u/s 9/03 dated 20-6-03 and 24/2004 ST dated 10-9-2004 for commercial training courses not recognized under Indian law.

In the judgment by Appellate Tribunal CESTAT BANGALORE, the appellant was required to pre-deposit service tax of Rs 1,11,240/- with separate penalties for providing commercial training courses. The appellant had an agreement with M/s. International Air Transport Association (IATA) Canada to offer courses developed by IATA for training travel agents. The Commissioner denied exemption under Notification No. 9/03 and 24/2004 ST, stating the course was not recognized under Indian law. The bench considered arguments from both sides, where the appellant cited an Apex Court judgment related to Income Tax Act for exemption to Oxford University Press, but the learned DR pointed out the distinction that the Notification required recognition under law. The Tribunal opined that the appellant's case was not strong, directing a pre-deposit of Rs 30,000 within three months. Upon compliance, the remaining duty and penalties would be waived, and recovery stayed pending appeal, with a compliance report due on 10th July 07.