2013 (11) TMI 503 - AT - Service Tax

Waiver of pre deposit - commercial coaching and training service - vocational training - personality development courses to the students under the brand names of the Licensor viz. Zeal and Speak Easy - Held that - Exemption of vocational training institute would be extended only to those institutions that impart training to enable to the trainee to seek employment or self-employment. The contention of the applicant is that they are eligible to benefit of exemption would be decided upon examination of course detail at the time of appeal hearing. - stay granted partly.

Summary

Issues:
- Application for waiver of predeposit of tax
- Eligibility for exemption under Notification No.24/04-ST
- Commissioner (Appeals) decision on merit despite non-compliance with stay order

Analysis:
1. The applicant filed an application seeking waiver of predeposit of tax amounting to Rs.2,34,376/- along with interest and penalty. The appellant is involved in providing personality development courses to students under specific brand names. The tax was demanded under the category of 'commercial coaching and training service'. The appellant claimed exemption as a Vocational Training Institute under Notification No.24/04-ST dated 10.9.04. The contention was that the tax should not be levied on an individual as it is a proprietrix firm. Additionally, the appellant asserted eligibility for cum tax benefit.

2. The Assistant Commissioner reiterated the findings of the Commissioner (Appeals) during the proceedings. After considering the submissions from both sides and evaluating the facts and circumstances of the case, the Tribunal observed that the exemption for vocational training institutes is applicable only to institutions that provide training enabling trainees to seek employment or self-employment. The Tribunal decided that the appellant's eligibility for the exemption would be determined based on a detailed examination of the course content during the appeal hearing.

3. Notably, the Commissioner (Appeals) had decided the appeal on merit despite the appellant's failure to comply with the stay order. Consequently, the Tribunal directed the appellant to deposit a sum of Rs.50,000/- within six weeks. Upon such deposit, the predeposit of the remaining tax amount, along with interest and penalty, would be waived, and the recovery thereof stayed during the pendency of the appeal. The appellant was instructed to report compliance by a specified date.

This comprehensive analysis covers the issues of the application for waiver of predeposit of tax, the eligibility for exemption under Notification No.24/04-ST, and the Commissioner (Appeals) decision on merit despite non-compliance with the stay order, as detailed in the judgment delivered by the Appellate Tribunal CESTAT CHENNAI.