2024 (3) TMI 320 - AAR - GST

Exemption provided under Entry number 66 of the Notification 12/2017- Central Tax (Rate) dated 28/06/2017 - Educational institute or not - Seeking clarification as to whether the educational courses which are conducted by the 'Additional Skill Acquisition Programme Kerala' falls under the taxable service or not - N/N. 12/2017-Central Tax (Rate) dated 28/06/2017 - HELD THAT - To be qualified as an Educational Institution under para 2(y) (ii), the applicant is required to establish that the courses provided are part of a curriculum for obtaining a qualification recognised by any law for the time being in force. In this regard, the applicant has not produced the required details/documents in support of their contention that the courses are recognised by law. In the absence of relevant facts or materials, the claim of the applicant to consider them to cover under this definition may not be appropriate. Further, as per para 2(h) of the Notification No. 12/2017- Central Tax (Rate) dated 28/06/2017, an approved vocational education course means, -(i) a course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vocational Training or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or (ii) a Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship. On going through the above entry it is evident that the applicant is eligible for exemption, only when the services provided by them are in relation to either of the items listed under clause 2 (h) (i) or (ii) above. Further, as per para 1.2 of the said agreement, the Awarding Body is an entity duly recognised by NCVET which awards or proposes to award certification to trainees for an NCVET approved qualification by ensuring quality training and reliable assessments. As per para 8.1.7 of the agreement, the 'Awarding Body' shall enter into an agreement with the training bodies to offer Vocational Education and Training in the National Skill Qualifications Committee (NSQC) approved qualifications. However, the exemption under clause 2 (h) (ii) of the notification is available only to the Modular Employable Skill Courses, approved by the National Council of Vocational Training (NCVT), run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship. Though the applicant has been recognised by NCVET, the benefit of the said notification could not be availed by them as they have not registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship. In the absence of supporting documents proving that they are registered with the Directorate General of Training, as required under the exemption notification, their claim cannot be considered to be covered under this definition. The issue raised by the applicant do not sustain to avail exemption under entry no. 66 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time.

Summary

Issues Involved:
1. Whether the educational courses conducted by Additional Skill Acquisition Programme Kerala (ASAPK) fall under the taxable service or exempted under Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017.

Summary:

Issue 1: Whether the educational courses conducted by ASAPK fall under taxable service or exempted under Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017.

The applicant, Additional Skill Acquisition Programme Kerala (ASAPK), sought an advance ruling to determine if the educational courses they conduct are taxable or exempt under Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017. The main objectives of ASAPK include enhancing employability through skill training, STEM education, and capacity building for various stakeholders. They offer courses and training through accredited agencies, and upon successful completion, certificates are issued by ASAPK.

The applicant contended that their courses fall under entry number 66 of the said notification, which exempts services provided by educational institutions to their students, faculty, and staff. They argued that ASAPK qualifies as an "educational institution" under para 2(y) of the notification, providing services as part of a curriculum for obtaining a qualification recognized by law or as part of an approved vocational education course.

Discussion and Conclusion:

The Authority examined whether ASAPK qualifies as an "educational institution" under para 2(y) of the notification. To qualify, the applicant must establish that their courses are recognized by law. However, the applicant did not provide sufficient documentation to support this claim.

Furthermore, the Authority considered whether ASAPK's courses qualify as an "approved vocational education course" under para 2(h) of the notification. Although ASAPK is recognized by the National Council for Vocational Education and Training (NCVET), they are not registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship, as required by the notification.

The Hon'ble Supreme Court's ruling in the case of Commissioner of Customs (Import) Vs M/s. Dilip Kumar and Company was cited, emphasizing that exemption notifications should be interpreted strictly, and any ambiguity should be resolved in favor of the revenue.

Ruling:

The Authority concluded that ASAPK's courses do not qualify for exemption under entry number 66 of Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017. Therefore, the educational courses conducted by ASAPK are taxable services.