2007 (12) TMI 130 - HC - Service Tax

Charitable educational trust formed with the object of imparting coaching - finding that the petitioner falls within ambit of Commercial Coaching & Training u/s 65(27) can t be sustained - ends of justice would be met, if stay of recovery of the demanded tax is granted subject to the condition that petitioner will deposit half of the demanded amount within 8 weeks - Tribunal is directed to dispose of the appeal within a period of six months from the dale of receipt of a copy of this order

Summary

Issues:
1. Writ of mandamus for expeditious disposal of appeal by Customs, Central Excise and Service Tax Appellate Tribunal.
2. Exemption from service tax for a charitable educational trust.
3. Dispute over service tax liability for commercial coaching activities.
4. Appeal against order imposing service tax, penalties, and interest.
5. Argument regarding the charitable nature of the trust's activities.
6. Granting stay of recovery of demanded tax amount.

Analysis:
1. The petitioner, a charitable educational trust, sought a writ of mandamus for the expeditious disposal of an appeal filed against a service tax order. The Tribunal was directed to dispose of the appeal within six months from the date of the court's order.

2. The petitioner, being a charitable trust engaged in educational activities, claimed exemption from service tax. The trust was formed to provide training in various fields and had established educational institutes. It was exempted from income tax.

3. A dispute arose when the trust received a notice to register for service tax and subsequently faced a demand for service tax, education cess, penalties, and interest for its commercial coaching activities. The authorities held that the trust's services did not qualify for exemption and were liable for tax.

4. The petitioner appealed the order imposing service tax, penalties, and interest. The appeal was dismissed by the first respondent, leading the petitioner to approach the Customs, Central Excise and Service Tax Appellate Tribunal in Bangalore.

5. The petitioner argued that its charitable nature and non-commercial activities were not considered by the authorities correctly. The counsel contended that the trust did not fall under the definition of commercial coaching and training as per the Finance Act, 1994.

6. After hearing both parties, the court granted a stay of recovery of the demanded tax amount on the condition that the petitioner deposits half of the demanded sum within eight weeks. The Tribunal was instructed to dispose of the appeal within six months from the date of the court's order, ensuring justice was served.

This judgment addressed the issues of service tax liability for a charitable trust, the interpretation of commercial coaching activities, and the need for a fair and expeditious resolution of the appeal process.