2018 (4) TMI 1761 - AT - Service Tax

Taxability - Commercial Training Coaching service - Business Auxiliary Service - input tax credit - HELD THAT - The appellant have imparted Computer training under FULL Accreditation granted by DOEACC Society (a body under the Department of Electronics and Information Technology Ministry of Communications and Information Technology, Government of India), vide certificate dated 18th Day of March, 1989 granted for five years to conduct DOEACC O Level Computer Course under the head of Commercial Training Coaching - The approved Courses and/or Degrees or Diplomas granted under various Government approved Institutes or Universities, courses are exempted from the levy of service tax where the institutes have granted degree or diploma recognized by law - demand under the head of Commercial Training Coaching under Section 65(27) read with Section 65(105)(zzc) of the Finance Act is set aside. Business auxiliary service - HELD THAT - The appellant have provided service to the educational Institutes/Universities which is not a commercial activity - no service tax is payable under the category of BAS as the service tax is dutiable on the person who provides such services to promote/support the business of another. Input tax credit - Duty paying documents - Rule 9 of Cenvat Credit Rules, 2004 - failure to prove that credit can be correctly taken and utilized on the basis of invoice issued by provider of input service - HELD THAT - The Learned Counsel for the appellant have demonstrated sample(s) copies of such invoices during the course of hearing. All the required information being - name, address, registration number, etc., type of the service tax is payable thereon, etc., are given - Credit is allowed. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Taxability under 'Commercial Training & Coaching'
2. Taxability under 'Business Auxiliary Service'
3. Disputed input tax credit

Analysis:
1. Taxability under 'Commercial Training & Coaching':
The appellant imparted Computer training under FULL Accreditation granted by DOEACC Society. The appellant held a certificate to conduct DOEACC "O" Level Computer Course under the head of Commercial Training & Coaching. The Tribunal found that courses granted by Government approved Institutes or Universities, which are recognized by law, are exempt from service tax. Therefore, the Tribunal set aside the amount of ?1,40,056 under the head of Commercial Training & Coaching.

2. Taxability under 'Business Auxiliary Service':
The appellant conducted online examinations on behalf of various educational Institutes/Universities and received service charges. The issue revolved around whether service tax was applicable under the category of Business Auxiliary Service (BAS). The Tribunal determined that since the appellant provided services to educational Institutes/Universities, which is not a commercial activity, no service tax was payable under BAS. The Tribunal clarified that service tax is levied on the person who provides services to promote/support the business of another.

3. Disputed input tax credit:
The dispute regarding input tax credit of ?1,14,824 from July 2008 to April 2012 was analyzed by the Tribunal. The impugned order disallowed the input service credit due to the appellant's failure to prove that credit could be correctly taken and utilized based on invoices issued by the service provider. The Tribunal noted that the invoices did not comply with Rule 4A of Service Tax Rules as they lacked proper details. However, during the hearing, the appellant's Counsel presented sample copies of invoices containing all necessary information. Consequently, the Tribunal set aside the impugned order and allowed the appeal, granting the appellant consequential benefits in accordance with the law.

In conclusion, the Tribunal ruled in favor of the appellant on all three issues - taxability under 'Commercial Training & Coaching', 'Business Auxiliary Service', and disputed input tax credit. The appellant was granted relief based on the exemptions applicable to recognized courses, the non-commercial nature of services provided to educational Institutes/Universities, and the fulfillment of invoice requirements for input tax credit.