2015 (11) TMI 1584 - AT - Service Tax

Demand along with interest and penalties - appellant provided commercial training or coaching service - Alwar C. Ex & S.T. Division has indeed dropped a similar demand raised in respect of the appellants Alwar unit on the ground that the amount received by appellant s Alwar unit has been included in the show cause notice issued to the appellant at Hyderabad - Held that - in view of the clear report from Central excise Commissionerate Hyderabad that the show cause notices issued to the appellant at Hyderabad covered the fee recovered by all the off-campus centres located all over India, it follows that the fee recovered at Sagar was also covered therein and therefore the show cause notice resulting in the impugned order-in-appeal was not required to be issued at the 1st place. - Decided in favour of appellant

Summary

Issues: Service tax demand on commercial training service

Analysis:
The Appellate Tribunal CESTAT NEW DELHI heard an appeal challenging an order-in-appeal sustaining a service tax demand of Rs. 81,138 for the period March 2004 to July 2005 on the grounds of non-payment of service tax for commercial training or coaching services provided by the appellant. The appellant did not contest the demand on merits, citing a previous decision against it by CESTAT Bangalore. However, the appellant argued that the amount in question had already been included in show cause notices issued by the Service Tax commissionerate in Hyderabad, and a similar demand had been dropped by the Deputy Commissioner in Alwar based on the same grounds.

Upon reviewing the records, the Tribunal found that the demand raised in Alwar had been dropped due to the inclusion of the amount in the show cause notice issued to the appellant in Hyderabad. The Tribunal noted that the appellant had made a similar plea before the primary adjudicating authority, which had considered the Commissionerate's letter stating that the notices issued in Hyderabad covered all amounts paid by students enrolled in the appellant's centers across India. Since the fee recovered at Sagar was also covered in the notices issued in Hyderabad, the Tribunal concluded that the impugned order-in-appeal was unnecessary. Consequently, the Tribunal allowed the appeal, ruling in favor of the appellant.