2012 (6) TMI 303 - AT - Service Tax

Commercial Training or Coaching Centre - assessee contended that definition excludes many institutes or establishment which issues any certificate or diploma or degree or any educational qualification recognized by law for the time being in force and their case fall within the exclusion clause - non-production of documents - Held that - Since the documents now produced by the appellants were not before the original authority, they are required to be given a second chance to go before the adjudicating Commissioner and prove their case that they fall under the exclusion clause in the definition of Commercial Training or Coaching Centre. Accordingly, we set aside the impugned order and remand the matter to the adjudicating Commissioner.

Summary

Issues:
1. Change of cause title in a miscellaneous application filed by the Revenue.
2. Confirmation of service tax demand against the appellants as a Commercial Training or Coaching Centre.
3. Exclusion clause under the Finance Act, 1994.
4. Documents produced by the appellants for waiver of predeposit.
5. Remand of the matter to the adjudicating Commissioner for reevaluation.

Analysis:

1. The Appellate Tribunal, CESTAT, Chennai, considered a miscellaneous application filed by the Revenue for a change of cause title. The respondent was initially shown as Commissioner of Central Excise, Chennai IV, but as the matter pertained to service tax, it was noted that the Commissioner of Service Tax, Chennai, should be the appropriate respondent. The Tribunal allowed the application for the change of cause title as requested by the Revenue.

2. The issue of the confirmation of service tax demand against the appellants as a Commercial Training or Coaching Centre was raised. The appellants contended that they fell within an exclusion clause of the Finance Act, 1994, which exempts institutes issuing recognized educational qualifications. However, they were unable to provide the necessary proof and certificates during the initial proceedings. The Tribunal acknowledged the documents produced by the appellants later and decided to grant them a second chance to present their case before the adjudicating Commissioner.

3. The exclusion clause under the Finance Act, 1994, was a crucial aspect of the case. The appellants argued that they should be excluded from the definition of a Commercial Training or Coaching Centre based on the educational qualifications they offer. The Tribunal recognized the significance of this argument and directed the adjudicating Commissioner to allow the appellants to present all relevant documentary proof to establish their eligibility for the exclusion clause.

4. The appellants requested a waiver of the predeposit requirement and sought a remand of the matter to the adjudicating Commissioner for further examination based on the documents they provided. The Tribunal considered the submissions from both sides and decided to waive the predeposit requirement, allowing the appellants the opportunity to prove their case with the newly submitted documents.

5. In light of the above considerations, the Tribunal set aside the impugned order and remanded the matter to the adjudicating Commissioner. The Commissioner was instructed to provide the appellants with a fair hearing, including the chance to present all documentary evidence supporting their claim for exclusion under the Finance Act, 1994. The appeal was allowed, and the matter was sent back for a fresh order in accordance with the law, granting the appellants a second opportunity to establish their case.