2019 (2) TMI 27 - AT - Service Tax

Classification of services - Commercial Training and Coaching Services or not - educational pogrammes conducted by the appellant - Held that - Such post-graduate short term courses are in the nature of professional development programmes and /or continuous education programmes for development of manpower/skill, is not taxable under the category of Commercial Training or Coaching Service as defined under Section 65 (27) of the Finance Act - the appellant is not a Commercial Coaching or Training Centre - demand set aside. Levy of service tax - amount received for publishing advertisement from other educational institutes in the Business School Directory - Held that - The same is not taxable, being advertisement made in print media, as per the exception given under Section 65(105)(zzm) - demand set aside. Business Auxiliary Service - stall fees collected for educational exhibition organized by appellant - Held that - As the exhibition held by the appellant is for educational purposes, the same does not qualify as business exhibition under Section 65(105)(zzo) read with Section 65(105)(19(a), wherein it is provided that business exhibition so as to promote/to market/to advertise/to show any product or service intended for the growth in business of the producer or provider of such product or service - service tax levied under these categories is not tenable. Business Support services - rating of Business School done by the appellant - Held that - The said issue is already decided in favor of the appellant, as the same issue was raised in the earlier show cause notice - demand set aside. Management Consultant Service - reverse charge mechanism - remuneration paid for conducting lectures /seminars to faulty from abroad - Held that - The lectures /advice given by the foreign experts/professors at workshops on various management programmes, are in the nature of delivery of lectures and speaking at the workshops are for intellectual development of the professors, the same is thus not a taxable service under the category of Management of any business as defined under Section 65(105) of the Finance Act, 1994 read with Section 65(105)(r) - demand set aside. Extended period of limitation - Held that - As the appeal is decided on merits, there is no given finding on the issue of limitation raised by the appellant. Appeal allowed in toto.

Summary

Issues involved:
i) Taxability of educational programs under "Commercial Training and Coaching Services"
ii) Taxability of amount received for publishing advertisements
iii) Taxability of stall fees collected for educational exhibitions
iv) Taxability of rating of Business School under Business Support Service
v) Taxability of remuneration paid for conducting lectures/seminars to foreign faculty under reverse charge mechanism

Analysis:
1. The primary issue was whether the educational programs conducted by the appellant fall under the category of "Commercial Training and Coaching Services." The appellant argued that as an educational institute offering degrees recognized by law, they do not qualify as a "Commercial Coaching and Training Centre." Citing Circular No. 59/8/2003-ST, it was established that institutes providing recognized degrees are exempt from service tax for training programs. The Tribunal agreed, ruling that post-graduate courses are not taxable under the said category, and the appellant is not a commercial coaching center.

2. The next issue was the taxability of the amount received for publishing advertisements. The Tribunal determined that such advertisements in print media are exempt from service tax under Section 65(105)(zzm).

3. Regarding the collection of stall fees for educational exhibitions, it was found that since the exhibitions were for educational purposes and not for promoting business growth, they did not qualify as business exhibitions under the relevant sections. Therefore, service tax under this category was deemed not applicable.

4. The question of taxability of the rating of Business Schools was also addressed. The Tribunal noted that this issue had been previously decided in favor of the appellant, and the demand was set aside accordingly.

5. Lastly, the taxability of remuneration paid for foreign faculty conducting lectures/seminars was discussed. The Tribunal ruled that such activities were for intellectual development and not taxable under the category of "Management of any business."

In conclusion, the Tribunal allowed the appeal, setting aside the demands raised against the appellant. The decision was made on the merits of the case, and no finding was recorded on the issue of limitation raised by the appellant.