2018 (4) TMI 1038 - AT - Service Tax

Exemption under N/N. 24/2004 dated 10.09.2004 - Commercial Training and Coaching service - denial of exemption on the ground that courses conducted by them are not approved by the competent authorities like AICTE - Held that - in similar set of facts the Tribunal in the case of Canan School of Catering and Hotel Management Vs. CST Chennai 2018 (3) TMI 699 - CESTAT CHENNAI has held that those courses which provide such skills to the trainee to seek employment directly after such training or coaching shall be excluded from tax liability - exemption allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Service tax liability for courses in Hotel Management and Catering Technology under Commercial Training and Coaching service; Claim for exemption under Notification No. 24/2004 dated 10.09.2004.

Analysis:
The appeals revolved around the service tax liability of the appellants for providing courses in Hotel Management and Catering Technology under the category of Commercial Training and Coaching service. The dispute centered on the claim for exemption under Notification No. 24/2004 dated 10.09.2004. The lower authorities had confirmed the service tax liability along with penalties for the period July 2003 to March 2010. The main issue raised by the appellants was their claim for exemption under the said Notification, which exempted taxable services of Commercial Training or Coaching provided by a Vocational Training Institute that imparts skills enabling trainees to seek employment or undertake self-employment directly after training. The appellants argued that their courses, specialized in the hospitality industry, qualified for exemption. However, the service tax liability was confirmed on the grounds that the courses were not approved by competent authorities like AICTE, rendering them ineligible for the claimed exemption.

The Tribunal delved into the term "vocational" and referred to previous decisions to analyze the scope of exemption. Citing cases like Ashu Exports Promoters Pvt. Ltd. Vs. CST and Wigan & Leigh College India Ltd. Vs. Joint Commissioner of Service Tax, the Tribunal highlighted the importance of the courses being recognized as vocational in a specialized area. In a similar case involving Canan School of Catering and Hotel Management, the Tribunal emphasized that courses providing skills for employment directly after training fall under the exemption. The Tribunal noted that the courses in question were not academic like PGDM/MBA but specialized vocational courses. The Tribunal ruled that the courses were covered by the exemption in the notification and set aside the impugned order, allowing the appeal.

In conclusion, the Tribunal found no merit in the impugned orders and set them aside, ultimately allowing the appeals based on the analysis of the exemption notification and the nature of the courses offered by the appellants in Hotel Management and Catering Technology.