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2013 (12) TMI 209 - AT - Service TaxApplication for modivation of stay order 2013 (12) TMI 215 - CESTAT CHENNAI - Demand of service tax - Commercial Training and Coaching Service - 50% tax liability not paid as claimed to be cost of materials supplied - Held that - activity relates to testing of software and is primarily connected with computer software development and hence is prima facie covered by the exclusion clause under Notification No.24/2004-ST as amended by Notf. 19/2005-ST - it will not be proper to make any modification of the stay order, in view of the observation of the Bombay High Court in the case of Baron International Ltd. 2003 (9) TMI 97 - HIGH COURT OF JUDICATURE AT BOMBAY - However the time-limit for complying with the stay order is extended by another six weeks - Following decision of Rayudu Vision Media Ltd. Vs Commissioner of Central Excise, Hyderabad 2013 (12) TMI 52 - CESTAT BANGALORE - no case for modification in the stay order.
Issues:
1. Nine miscellaneous applications filed by the applicant challenging Stay Order No.41372 to 41374/2013. 2. Prima facie view on the liability of service tax on 50% of consideration received by the applicant. 3. Request for modification of the stay order and extension of time-limit for compliance. 4. Argument for exemption under Notification No.24/2004-ST for vocational training. 5. Opposition to raising new contention and reconsideration of stay order by the Revenue. 6. Interpretation of the proviso and explanation related to computer training institutes. 7. Consideration of additional grounds for detailed argument at the time of appeal disposal. Analysis: 1. The applicant filed nine miscellaneous applications challenging Stay Order No.41372 to 41374/2013 concerning three appeals on the same issue for different periods. The applications sought modification of the stay order, extension of time-limit for compliance, and raising additional grounds for consideration by the Bench. 2. The applicant, providing "Commercial Training and Coaching Service" in software testing, paid service tax on 50% of consideration received. The Tribunal, after considering arguments, directed an additional pre-deposit of Rs.40 lakhs, as it was not convinced that 50% claimed as the cost of materials supplied was exempt from service tax. 3. The applicant sought reconsideration of the order, claiming eligibility for exemption under Notification No.24/2004-ST for vocational training. The Tribunal considered the arguments but rejected the modification application, extending the time-limit for compliance by six weeks. 4. The Revenue opposed the new contention, citing decisions that commercial training by computer training institutes is not eligible for exemption under the notification. The Tribunal found that the activity of testing software was covered by the exclusion clause under Notification No.24/2004-ST. 5. The Tribunal noted that the stay order should not be modified based on the arguments presented, as observed in a decision by the Bombay High Court. The application for modification was rejected, but the compliance time was extended. 6. The Tribunal interpreted the proviso and explanation related to computer training institutes, stating that testing of software was primarily connected with computer software development and excluded from the benefit of the exemption. 7. The Tribunal decided to consider the applications for additional grounds at the time of appeal disposal, emphasizing that the prima facie view expressed was for deciding the stay petition. The nine miscellaneous applications were disposed of accordingly.
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