2015 (10) TMI 2408 - AT - Service Tax

Commercial training or coaching service Appellant contested SCN on grounds that they are charitable institution and courses conducted by them are of vocational in nature thus eligible for benefit of Notification No.9/2003-ST - extended period of limitation Revenue contends that there is nothing on record to show that after completing the training, students would get employment or self-employed Held That - Notification No.9/2003-ST exempted services provided by Commercial Training or Coaching Institutes if they impart skills to enable trainee to seek employment or undertake self-employment Impugned order set aside Decision made in case of Doon Institute of Information 2014 (4) TMI 253 - UTTARAKHAND HIGH COURT followed Decided in favour of assessee.

Summary

Issues:
Taxability of services under the category of 'commercial training or coaching centers' for various courses conducted by the appellant.

Analysis:
The appeal challenged an Order-in-Appeal that confirmed service tax liability on fees received for conducting specific courses by the appellant's educational institutes. The appellant claimed exemption under Notification No.9/2003-ST as a charitable institution providing vocational training. The adjudicating authority upheld service tax demands for certain courses and imposed penalties. The appellant argued that they were entitled to exemption under the notification as their courses enabled students to seek employment or self-employment. The appellant cited relevant judgments supporting their claim, emphasizing the vocational nature of the courses.

The Revenue contended that the appellant's courses did not guarantee employment or self-employment post-training. They highlighted a change in the definition of vocational training by a subsequent notification, emphasizing that vocational training should align with designated trades under the Apprentices Act, 1961. The Revenue referred to previous Tribunal decisions on vocational training definitions to support their stance.

Upon considering the arguments, the Tribunal analyzed the taxability issue concerning the courses offered by the appellant. It was undisputed that the courses led to certificates that could assist in employment or self-employment. The Tribunal examined Notification No.9/2003-ST, which granted exemption to commercial training institutes providing skills for employment or self-employment. Citing the judgments of the High Courts of Uttarakhand and Delhi, the Tribunal found in favor of the appellant, emphasizing that the courses indeed qualified as vocational training under the notification.

The Tribunal dismissed the Revenue's reliance on Tribunal decisions, highlighting the binding nature of High Court judgments. Given the authoritative judicial pronouncements and the vocational nature of the appellant's courses, the Tribunal set aside the impugned order, allowing the appeals challenging the service tax liability on the specified courses conducted by the appellant's educational institutes.