2013 (8) TMI 785 - AT - Service Tax

Commercial Training or Coaching Assesse was engaged in the activity of video tape production and also providing training in visual effects and animation Held that - Training provided in writing codes using languages like UNIX or for using a Relational Database Management System like Oracle or a Front End Tool like Java were on the same footing as a training in creating animation using a software in computer - There were similar training like CAD (Computer Aided Design) or CAM (Computer Aided Manufacture) which types of trainings also provided by Computer Training Institutes using computer and necessary software - The matter needs detailed examination in final hearing. The difference between the two type was very thin there was some difference in the level of knowledge of the internal structure of software that was imparted - The training provided by the applicant appears to be of the latter type where not much knowledge about the contents of a software was imparted but the skill to use a software was imparted - latter type of training also was known as computer training to common man. Waiver of pre deposit 35 Lakhs were ordered to be submitted as pre deposit rest of the duty waived and stayed till the disposal stay granted partly.

Summary

Issues:
1. Change of cause title to Commissioner of Service Tax, Chennai.
2. Demand against the applicant under five broad categories.
3. Contesting service tax demand under Commercial Training or Coaching Service.
4. Interpretation of exemption under Notification No. 24/2004-ST for vocational training.
5. Eligibility for exemption based on training provided by the applicant.
6. Requirement for predeposit and waiver of balance dues.

Analysis:

Issue 1: The Department filed a miscellaneous application seeking a change in the cause title to Commissioner of Service Tax, Chennai due to the appellant falling under the jurisdiction of said Commissioner.

Issue 2: The applicant, engaged in video tape production and training in visual effects and animation, faced demands under five categories, including non-payment of service tax, short payment of service tax, irregular CENVAT credit, and interest on delayed payment.

Issue 3: The applicant did not contest the service tax demands for non-payment and short payment, except for the demand related to Commercial Training or Coaching Service. The contention was that the training provided qualified as vocational training, seeking exemption under Notification No. 24/2004-ST.

Issue 4: The dispute arose regarding the interpretation of the exemption under Notification No. 24/2004-ST for vocational training, specifically in the context of training provided by the applicant in visual effects, visual communication, and animation.

Issue 5: The Revenue argued against the exemption, citing an amendment to the notification excluding taxable services provided by computer training institutes from the exemption. The contention was that the training provided by the applicant, involving the use of computers, did not qualify for the exemption.

Issue 6: After considering arguments from both sides, the Tribunal noted the thin difference between various types of computer training and the need for detailed examination. The Tribunal directed the applicant to predeposit a specified amount while waiving the balance dues pending the appeal.

This judgment addressed the jurisdictional change, service tax demands, interpretation of exemption for vocational training, eligibility for exemption based on the training provided, and the requirement for predeposit. The decision highlighted the need for further examination regarding the nature of the training provided by the applicant and the applicability of the exemption under Notification No. 24/2004-ST.