2018 (4) TMI 1338 - AT - Service Tax

Whether the commercial training or coaching centre provides training and coaching of foreign languages such as French, German, Japanese, Spanish etc. falls under vocational training and consequently exempted under N/N. 9/2003-ST dated 20.6.2003? Held that - very identical issue in respect of training and coaching in English language has been decided in the case of Anurag Soni 2017 (2) TMI 1220 - CESTAT, NEW DELHI , where it was held that the said training is covered under vocational training. The training in the present case imparting the foreign languages is at par with the training in English language - the judgement squarely applies to the present case - demand do not sustain - appeal dismissed - decided against Revenue.

Summary

Issues involved:
Whether training and coaching in foreign languages such as French, German, Japanese, Spanish provided by a commercial training or coaching center qualify as 'vocational training' and are exempted under Notification No.9/2003-ST.

Analysis:
The issue in this case revolves around determining whether training in foreign languages provided by a commercial training center falls under 'vocational training' and is exempted from service tax. The Revenue argues that training in foreign languages does not qualify as vocational training but falls under commercial training or coaching services, making it taxable. They contend that vocational training should enable trainees to directly seek employment, which learning foreign languages may not achieve. On the other hand, the respondent argues that previous Tribunal judgments, such as Anurag Soni and Innovative Training Place, have held that training in languages like English is considered vocational training and thus exempt. The Tribunal reviewed the submissions and found that the respondent's training in foreign languages, similar to English language training, qualifies as vocational training under the relevant notifications.

The Tribunal referred to previous judgments in the cases of Anurag Soni and Innovative Training Place, which established that training in English language skills qualifies as vocational training and is exempt from service tax. The Tribunal emphasized that the focus should be on the nature of coaching provided rather than the status of the language being taught. The Tribunal noted that the appellant's training modules in English language skills, including accent training and job-related exercises, directly enable trainees to seek employment in call centers, hospitality, or aviation sectors. The Tribunal found that the training imparted by the appellant aligns with the definition of vocational training institute and thus qualifies for exemption under the relevant notifications.

The Tribunal further highlighted that the appellant's training in foreign languages is akin to training in English language skills, which has been previously upheld as vocational training. The Tribunal rejected the Revenue's argument that general improvement in communication skills in English does not lead to direct employment opportunities, emphasizing the specific and targeted nature of the appellant's courses designed for employment benefits. The Tribunal distinguished this case from a previous decision where a short two-week course was deemed insufficient for employability. The Tribunal concluded that the appellant's training in foreign languages meets the criteria for vocational training and is eligible for exemption under the relevant notifications.

In conclusion, the Tribunal upheld the impugned order, dismissing the Revenue's appeal. The Tribunal found no flaws in the order, which correctly applied the law and precedent to determine that the training in foreign languages provided by the appellant qualifies as vocational training and is exempt from service tax.