2018 (6) TMI 792 - AT - Service Tax

Commercial Coaching or Training Service - appellants are engaged in running a Spoken English Language Coaching Center along with personality development in the name of ZEAL - Levy of Service Tax - Held that - The personality development course conducted by the appellant includes developing effective communication ability to interact with people English Language speaking skills personal grooming and Dining Etiquettes Interview and Group Discussion Training Presentation Skills and Body language etc. These are intended to develop overall skills of the students in order to facilitate them to obtain employment. As per the definition of Vocational Training Course if it intends to help the candidates / trainee to obtain self-employment directly or under the employer would quality as vocational training . The Tribunal in the case of Mariya Computer Systems 2017 (1) TMI 37 - CESTAT NEW DELHI has analyzed the issue and held that such course would fall under the category of vocational training and would be eligible for exemption. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Whether the activity of running a Spoken English Language Coaching Center along with personality development falls under 'Commercial Coaching or Training Service' subject to service tax?
2. Whether the appellant's course qualifies as 'vocational training' for exemption under Notification No.24/2004-ST?

Analysis:

Issue 1:
The appellants operated a Spoken English Language Coaching Center providing personality development under the name "ZEAL." The department contended that this activity falls under 'Commercial Coaching or Training Service,' making fees collected subject to service tax. The original authority and Commissioner (Appeals) upheld this view, resulting in the appeals. The appellant argued that their course falls under 'vocational training,' citing Notification No.24/2004-ST and relevant case law. The respondent disagreed, citing a case where an English speaking course was not considered vocational training. After hearing both sides, the Tribunal examined the course content, including communication skills, grooming, and interview training, aiming to enhance employability. The Tribunal referred to the definition of 'Vocational Training Course' and relevant notification, ultimately ruling in favor of the appellant, granting exemption from service tax.

Issue 2:
The appellant's course content aimed at overall skill development for employment, aligning with the definition of 'Vocational Training Course' under Notification No.24/2004-ST. The Tribunal considered precedents, including a case where a similar course was deemed vocational training. In contrast, the respondent cited a case where a short English speaking course was not considered vocational training. The Tribunal distinguished between the cases, emphasizing the duration and purpose of the courses. Ultimately, the Tribunal found the appellant's course eligible for exemption as vocational training, overturning the demand for service tax. The impugned order was set aside, and the appeal was allowed with consequential relief as per law.