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2010 (6) TMI 269 - AT - Service TaxCommercial training or Coaching Service - The demand arose on the ground that the appellant provided commercial education service as a commercial coaching centre in terms of section 165(105)(zzc) of the Finance Act, 1994 read with section 65(26) and section 65(27) of the said Act.
Issues:
Service tax demand for commercial education service under section 165(105)(zzc) of the Finance Act, 1994 read with section 65(26) and section 65(27) for the period May 2005 to December 2006. Analysis: The appellant challenged the service tax demand of Rs. 1,68,06,053 and education cess of Rs. 3,36,121, contending that only education, not training, was imparted, citing precedents like Magnus Society, Centre for Development of Advanced Computing, and Indian School of Business. The appellant's course brochure did not mention training, supporting their argument that no taxable service was provided. The breakup of receipts showed various components, with the appellant claiming that after deducting non-taxable elements, the taxable amount would be limited to Rs. 8 lakhs. The revenue argued that the appellant provided both education and training, as evidenced by the brochure and the adjudicating authority's findings. The revenue asserted that the appellant operated as a commercial coaching center, justifying the tax liability. After hearing both sides, the Tribunal found that the non-taxable elements should not contribute to the tax liability. However, due to uncertainty regarding the inclusion of certain documents in the record, the Tribunal requested certification. Considering the appellant's claim that the tax liability might be limited to Rs. 8 lakhs, the Tribunal granted a waiver of pre-deposit during the appeal's pendency. Despite considering disposal of the appeal, the Tribunal proceeded with addressing the stay petition only since the revenue did not agree to the appeal's disposal. Consequently, the Tribunal granted a waiver of pre-deposit and stayed the realization of the demand during the appeal period.
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