2016 (11) TMI 1445 - AT - Service Tax

Benefit under N/N. 33/2011-S.T., dated 25-4-2011 - commercial coaching or training services - Held that - N/N. 10/2003-S.T. is granted to taxable services provided to any person by a commercial coaching or training which form an essential part of a course or curriculum of any other Institute or establishment, leading to issuance of any certificate or diploma or degree or educational qualification recognized by a law - the respondent has been granted approval for one time affiliation to Jawaharlal Nehru Technological University (JNTU). In the circumstances, the Commissioner (Appeals) has correctly concluded that the appellant would fall under the RFC degree issued by the respondent, which is recognized by the UGC - benefit allowed - appeal dismissed - decided against Revenue.

Summary

Issues:
Eligibility for exemption from service tax liability under Notification No. 33/2011-S.T.

Analysis:
The case involves the eligibility of the appellant for exemption from service tax liability under Notification No. 33/2011-S.T. The Original Authority initially denied the benefit of the notification, leading to the confirmation of service tax liability on the appellant. However, on appeal, the Commissioner (Appeals) set aside the original order and allowed the appeal of the appellant, prompting this subsequent appeal.

Detailed Analysis:
1. The appellant argued that they are entitled to exemption from service tax liability as per Notification No. 10/2003-S.T., which pertains to taxable services provided by a commercial coaching or training institute forming an essential part of a course recognized by law. The appellant's case revolved around the establishment of M/s. Rai University, Hyderabad campus, which was initially affiliated with Chattisgarh Niji Kshetra Viswa Vidyalaya. Following the de-recognition of the university by the Supreme Court, a one-time affiliation was granted to M/s. Rai University, which later operated as Rai Foundation Colleges, Hyderabad, and got affiliated with Jawaharlal Nehru Technological University, Hyderabad. All students admitted before the de-recognition were awarded degrees by JNTU, making them exempt from service tax liability.

2. The Commissioner (Appeals) meticulously analyzed the situation and concluded that the appellant fell under the RFC degree issued by the respondent, recognized by the UGC. The Commissioner highlighted the approval for one-time affiliation to JNTU, indicating the legitimacy of the educational qualifications conferred by the appellant. Consequently, the Commissioner found no justification for interfering with the impugned order and dismissed the Revenue's appeal.

In conclusion, the appellate tribunal upheld the decision of the Commissioner (Appeals) and dismissed the Revenue's appeal, affirming the appellant's eligibility for exemption from service tax liability under Notification No. 33/2011-S.T. The judgment emphasized the recognition of educational qualifications conferred by the appellant and the compliance with relevant legal provisions, ultimately leading to the dismissal of the Revenue's appeal.