Services Which is exempt from Service Tax (Symbiosis Society Vs. Commissioner of Central Excise, Pune III)

[Bimal jain]

Courses in : (i) Mass Communication, (ii) International Business Management, (iii) Telecom Management, (iv) Information Technology, (v) Management Studies, (vi) Geo-informatics and (vii) Operational Management are 'vocational courses' and therefore, exempt from Service tax.

Symbiosis Society Vs. Commissioner of Central Excise, Pune III [2015 (10) TMI 2408 - CESTAT MUMBAI]

In the instant case, Symbiosis Society (“the Appellant”) was conducting fifteen courses in their educational institutes. The Department alleged that the amounts received as fees for conducting courses on (i) Institute of Mass Communication, (ii) International Business Management, (iii) Telecom Management, (iv) Information Technology, (v) Management Studies, (vi) Geo-informatics and (vii) Operational Management during the period from July 1, 2003 to March 31, 2006 are liable to levy of Service tax under the category of "commercial training or coaching centres" and thereby, confirmed the demand on the Appellant.

The Hon’ble CESTAT, Mumbai has held that the courses provided by the Appellant were falling under the category of 'vocational training', which enables students to seek employment/self-employment and therefore, exempt from the levy of Service tax under Notification 9/2003-ST dated June 20, 2003.

Our Comments: Effective from July 1, 2012, services by way of education as a part of an ‘approved vocational education course’ are not liable to Service tax as per the Negative list of service, as specified under Clause (l)(iii) to Section 66D of the Finance Act.

Discussions to this article

[c v]

Sir,

Where are the details of "approved vocational education courses" available? Can you please share on this?

Thank you

CA. C V SURYAM

[Bimal jain]

S. 65B (11) "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 ²[or State Council for Vocational Training] offering courses in designated trades notified under the Apprentices Act, 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 Employment and Training, Union Ministry of Labour and Employment; ³[***]