2013 (6) TMI 818 - AT - Service Tax

Summary

Issues involved:
The issue involves whether the appellant, a charitable trust running management courses without recognition from AICTE, is liable to pay service tax on the consideration charged from students.

Summary:
The appellant, a Trust running management courses without AICTE recognition, was issued a show-cause notice for service tax evasion. The appellant contended that being a charitable organization, they are not liable for service tax. They argued that management education is not technical education, hence AICTE approval is not required. The Revenue argued that with a retrospective amendment, the appellant's charitable status does not exempt them from service tax liability. The Tribunal remanded the case for fresh consideration on whether the courses conducted were recognized by law without AICTE approval, considering the recent decision on the matter.

The appellant's contention of being a charitable organization and not liable for service tax is no longer sustainable due to a retrospective amendment. The reliance on Tribunal decisions was dismissed as they were set aside by the Apex Court. However, the Tribunal acknowledged the merit in the appellant's argument that AICTE approval is not required for management courses. The case was remanded for fresh consideration on the recognition of courses conducted without AICTE approval, allowing the appellant a reasonable opportunity to present their case. Other issues like time bar and penalty imposition were left open for further consideration.