2009 (1) TMI 422 - AT - Service Tax

Commercial Training and coaching centre- Notification No. 10/2003-ST, dated 20.06.2003- the appellant provide coaching to the failed students for board examination. The contention of the appellant though the appellant is liable to service tax but he is covered under exemption Notification No. 10/2003-ST, dated 20.06.2003. Held that- the certain legal point have not examined thus the matter is to be remand back for examine the matter afresh.

Summary

Issues:
1. Applicability of exemption Notification No. 10/2003 to commercial training or coaching services for failed students.
2. Examination of legal points not considered at the lower level.
3. Remand of the matter for fresh examination in light of Notification No. 10/2003.

Analysis:
1. The judgment addressed the issue of whether the appellants, engaged in providing Commercial Training or Coaching Services to failed students for board examinations, would be covered under exemption Notification No. 10/2003. The Notification exempts taxable services provided by a commercial training or coaching center if they are an essential part of a course recognized by law. The Tribunal found that legal points in favor of the appellants, particularly the benefit of the Notification, were not adequately examined at the lower level. Consequently, the matter was remanded for a fresh examination in light of Notification No. 10/2003. The lower authority was directed to pass a de novo order within three months from the receipt of the Tribunal's order.

2. The Tribunal observed that the legal points raised by the appellants, including the applicability of Notification No. 10/2003, were not thoroughly considered at the lower level. This lack of examination led to the decision to remand the matter for a fresh evaluation. The Tribunal emphasized the importance of a detailed review of the legal aspects, especially the provisions of the exemption notification, to ensure a comprehensive and just decision. By setting aside the impugned order and disposing of the appeal in the specified manner, the Tribunal aimed to facilitate a more informed and legally sound decision-making process.

3. The judgment highlighted the significance of Notification No. 10/2003 in determining the tax liability of the appellants providing commercial training or coaching services. By remanding the matter to the lower authority for a reevaluation in the context of the exemption notification, the Tribunal sought to clarify the applicability of the exemption and ensure a proper assessment of the legal arguments presented by the appellants. The directive to pass a fresh order within a specified timeframe underscored the Tribunal's commitment to resolving the issue promptly and in accordance with the relevant legal provisions.