2010 (6) TMI 351 - AT - Service Tax

Waiver of pre-deposit - Service tax liability, penalty and interest - on the ground that appellant is providing services of commercial training or coaching - appellant is a society or not - by retrospective amendment, activity of the appellant would get covered under the services of Commercial Training and Coaching Center - Held that - Govt. of India has brought in retrospective amendment to the definition of Commercial Coaching and Training Centre which could include the activity of the appellant and liability to service tax arises - Retrospective amendment made by the Act is silent on the question of limitation - application for waiver of pre-deposit of the amount involved is allowed - on the ground of limitation

Summary

Issues:
1. Stay petition for waiver of pre-deposit of service tax, interest, and penalties.
2. Service tax liability for providing commercial training or coaching.
3. Interpretation of retrospective amendment affecting the appellant's activities.
4. Consideration of relevant case laws in favor of the assessee.
5. Application for waiver of pre-deposit based on limitation.

Analysis:
1. The appellant filed a stay petition seeking a waiver of pre-deposit of a substantial amount comprising service tax, interest under Section 75 of the Finance Act 1994, and penalties under Sections 76, 77 & 78 of the same Act.

2. The service tax liability, penalties, and interest were imposed on the appellant for providing services related to commercial training or coaching, leading to a dispute regarding the nature of the appellant's activities.

3. The counsel argued that due to a retrospective amendment, the appellant's activities fell under the definition of "Commercial Training and Coaching Center." The retrospective change indicated the existence of differing interpretations of this definition. The issue of whether the appellant was providing education or not was deferred for final disposal of the appeal.

4. The counsel cited several decisions in support of the appellant's position, including judgments like Great Lakes Institute of Management Ltd. v. CST Chennai and ICFAI v. CCE Hyderabad, which favored the assessee's perspective.

5. After considering submissions from both sides and examining the records, the Tribunal noted that the show cause notice was issued in 2008 for service tax from 2003-2007. The Tribunal found that the retrospective amendment broadened the scope of "Commercial Training and Coaching Center," potentially covering the appellant's activities. However, the Tribunal agreed with the appellant's argument that the entire service tax amount was time-barred due to limitation issues. Consequently, the Tribunal allowed the application for waiver of pre-deposit based on limitation and stayed the recovery until the appeal's final disposal.