2007 (10) TMI 655 - AT - Service Tax

Summary

Issues involved:
The issue involves the demand of service tax on a company providing coaching services to students registered with foreign universities, contesting the classification as a 'commercial training or coaching centre' under section 65(27) of the Finance Act, 1994, and challenging the demand on both merits and limitation grounds.

Details of the judgment:

1. Classification as 'commercial training or coaching centre':
The appellants, a company operating under section 25 of the Companies Act, provided coaching to students registered with a foreign university. The demand for service tax was based on the gross amount collected from students. The primary question was whether the coaching activity could be considered 'commercial'. The appellants argued that since they utilized profits for their own infrastructural development, they should not be classified as a 'commercial coaching centre'. Despite the rejection of this argument by the Commissioner, a favorable view was noted from a coordinate Bench in similar cases, leading to the grant of waiver of pre-deposit and stay of recovery.

2. Stay order and disposal of appeal:
Considering the significant stake in the case, the Tribunal decided to expedite the appeal process. The appeal was scheduled for final hearing on a specific date to ensure timely resolution of the matter.

This judgment by the Appellate Tribunal CESTAT, CHENNAI addressed the issues of classification as a 'commercial training or coaching centre' and the expedited disposal of the appeal due to the high stake involved in the case.