2010 (12) TMI 1150 - AT - Central Excise

Levy of service tax - Training or coaching services - issuance of certificate or diploma or degree to the students recognized by law - Held that - the service tax in respect of the training and coaching provided by the appellants which for an essential part of a course or curriculum of a university leading to issuance of certificate or diploma or degree to the students recognized by law is not justified even though the same is obtained by the students of the institution run by the appellants through Distance Education Programme - appeal allowed - decided in favor of appellant.

Summary

Issues:
Condonation of delay in filing appeal, applicability of previous Tribunal decision on the current case, justification of service tax on training and coaching provided by educational institutions.

Condonation of Delay in Filing Appeal:
The judgment allowed the application for condonation of delay in filing the appeal due to the medical treatment of the individual responsible for filing the appeal. The delay of 16 days was considered justified, and the reason for the delay was accepted by the Tribunal.

Applicability of Previous Tribunal Decision:
The Tribunal referenced a previous decision (Final Order No. 1027/2010) in a similar case involving the same assessee. The previous decision set aside the demand based on the argument that the service tax on training and coaching provided by the educational institution was not justified. The Tribunal followed the ratio of the previous decision, which was deemed applicable to the current case, leading to the setting aside of the impugned order and allowing the appeal.

Justification of Service Tax on Training and Coaching:
The judgment highlighted the argument that the service tax on training and coaching provided by the appellants, which formed an essential part of a university course leading to the issuance of certificates or degrees, was not justified. Citing a decision of the Hon'ble Kerala High Court, the Tribunal concluded that levying service tax on such services was discriminatory and violative of Article 14 of the Constitution of India. Consequently, the impugned order was set aside, and the appeal was allowed based on this reasoning.

In conclusion, the judgment addressed the issues of condonation of delay in filing the appeal, the applicability of a previous Tribunal decision on the current case, and the justification of service tax on training and coaching provided by educational institutions. The decision was based on legal precedents and constitutional principles, ultimately leading to the allowance of the appeal in favor of the appellant.