2008 (5) TMI 197 - AT - Service Tax

Whether the computer training institute providing vocational training would be entitled to benefit of exemption Not. No. 24/2004-ST dated 10th Sept. 2004 as amended for the period from 10/09/2004 to 15/06/2005 - there is no dispute that the appellant is a computer training institute providing commercial training the service provided by the appellant satisfies the Explanation I of the said notification and it is within the purview of vocational training institute exemption is entitled

Summary

Issues Involved:
Whether a computer training institute providing vocational training is entitled to the benefit of exemption under Notification No. 24/2004-ST dated 10th September 2004 as amended.

Detailed Analysis:

1. Issue of Exemption Eligibility:
The main issue in this case revolves around whether a computer training institute providing vocational training can avail the exemption under Notification No. 24/2004-ST. The appellant claimed that they were offering computer training to enable trainees to seek employment or self-employment directly after training, falling under the category of a "vocational training institute" as per the notification. The Tribunal found that the appellant's services satisfied the criteria of a vocational training institute as defined in the notification, emphasizing that the service provided was within the purview of vocational training.

2. Interpretation of Notifications:
The Tribunal analyzed the relevant notifications, including Notification No. 9/2003-ST and Notification No. 24/2004-ST. It noted that while Notification No. 9/2003 initially exempted services provided by a computer training institute, subsequent amendments excluded these institutes from the scope of exemption. However, the Tribunal reasoned that a computer training institute providing vocational training could be considered a vocational training institute under the notification, thus making them eligible for the exemption.

3. Scope of Exemption Benefit:
The Tribunal emphasized that exemption notifications must be construed strictly but reasonably, considering the language used in the notification as a whole. It highlighted that the amendment by Notification No. 19/2005 clarified that the exemption under Notification No. 24/2004 would not apply to taxable services provided by a computer training institute. However, the Tribunal held that the appellant's services fell within the definition of a vocational training institute, making them eligible for the exemption.

4. Retrospective Effect of Amendments:
The Revenue contended that the amended notification should have retrospective effect, but the Tribunal clarified that unless specified otherwise, an exemption notification comes into effect on the date of its issue. Therefore, the Tribunal found no merit in the argument for retrospective application of the amendment.

5. Decision and Relief Granted:
After thorough consideration and analysis, the Tribunal concluded that the impugned order rejecting the appellant's refund claim was not sustainable. Consequently, the Tribunal set aside the order and allowed the appeal, granting consequential relief to the appellant.

In summary, the Tribunal ruled in favor of the appellant, recognizing their computer training institute as a vocational training institute eligible for the exemption under Notification No. 24/2004-ST, despite subsequent amendments excluding computer training institutes. The decision was based on a holistic interpretation of the notifications and the nature of services provided by the appellant.