2007 (6) TMI 527 - AT - Service Tax

Summary

Issues involved:
The issues involved in the judgment are seeking waiver of pre-deposit, penalty under section 76 of the Finance Act, exemption under Notification No. 9/2003-ST, and the classification of the institute as a commercial training or coaching center.

Waiver of Pre-deposit and Penalty under Section 76 of the Finance Act:
The appellant, a PSU Unit, sought waiver of pre-deposit of Rs. 14,24,545 and equal penalty along with penalty of Rs. 100 per day under section 76 of the Finance Act. The appellant, a Government institution providing training in various computer fields to students and officers, argued that the relationship between the institute and the students is not that of a client relationship. The revenue contended that the institute falls under the category of a commercial training or coaching center. The appellant's plea for exemption under Notification No. 9/2003-ST and Circular No. 59/8/03-ST was not accepted. The Bench considered previous orders where waiver of pre-deposit was granted in similar situations and allowed the stay application, waiving the pre-deposit and staying the recovery.

Classification of Institute as Commercial Training or Coaching Center:
The revenue asserted that the institute is a commercial training or coaching center providing technical coaching that enables trainees to seek employment directly after training. The appellant referred to a previous order involving a similar situation where waiver of pre-deposit was granted. The Bench, after considering the submissions and previous orders, allowed the stay application, granting waiver of pre-deposit and staying the recovery. The appeal was linked with another case for a final hearing on a later date.

This summary provides an overview of the judgment, highlighting the issues involved and the decisions made by the Appellate Tribunal CESTAT, Bangalore regarding the waiver of pre-deposit, penalty under section 76 of the Finance Act, and the classification of the institute as a commercial training or coaching center.