2015 (5) TMI 1072 - AT - Service Tax

Commercial coaching or training services - activity of providing courses in the areas of management, information technology, engineering and issue certificates of diploma, degree and post graduation for such courses conducted - the decision in the appellant s own case 2014 (9) TMI 345 - CESTAT MUMBAI referred where it was held that the services rendered are liable for service tax and interest thereof, but the penalties imposed are set aside - Held that - the same issue involves and the decision of the case apply. Demand of service tax confirmed - penalties set aside on the ground that there was a bona fide belief in not discharging the service tax liability and section 80 invoked - appeal disposed off - decided partly in favor of assessee.

Summary

Issues:
Service tax liability on courses conducted by the appellant, imposition of interest, imposition of penalties under the finance act 1994.

Analysis:

1. Service Tax Liability: The appeal was filed against an order confirming service tax liability for courses conducted by the appellant in management, information technology, and engineering fields. The lower authorities categorized the services under "commercial coaching or training services." The Tribunal, after considering a similar case involving the same appellant, upheld the service tax liability, citing that the services provided fell under the taxable category. The appellant's appeal to the High Court was also noted, but the Tribunal found no reason to deviate from its previous decision.

2. Interest and Penalties: The lower authorities not only confirmed the service tax liability but also imposed interest and penalties under various sections of the finance act 1994. However, the Tribunal, following the precedent set in the appellant's earlier case, set aside the penalties. The Tribunal invoked the provisions of section 80 of the finance act 1994, considering the appellant's bona fide belief in not discharging the service tax liability as a valid reason for waiving the penalties.

3. Final Decision: The Tribunal upheld the service tax liability and interest imposed on the appellant, in line with its previous ruling and the nature of services provided. However, the penalties were set aside based on the appellant's genuine belief regarding the tax liability. The appeal was disposed of accordingly, maintaining the service tax liability but relieving the appellant from the imposed penalties.

This judgment highlights the importance of correctly categorizing services for tax purposes, the application of legal provisions to waive penalties based on genuine belief, and the significance of consistency in judicial decisions.