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2023 (6) TMI 245 - AT - Service TaxLevy of Service Tax - Commercial Training or Coaching Service or not - training courses in the field of Hotel and Catering Management and are awarding certificates to the trainees on completion of said courses - levy of service tax on Arts and Craft course imparted by the appellant - HELD THAT - The appellant though contends that they are not imparting the course of Hotel and Catering Management has not been able to adduce any evidence as to the income shown in the table is derived from business other than commercial training and coaching services. The details of document as to whether the fees is collected by the appellant or the Arts Science College is not clear. So also it is argued by the appellant that SRM Deemed University was formed and some of the institutions including the appellant, are now under the aegis of the Deemed University. It is not clear as to whether appellant is now part of the Deemed University and is imparting any course or providing any facility of internship only. The facts as to how the demand has been raised on the income of the appellant is not clear. We are therefore of the considered opinion that the matter requires to be remanded. The very same issue was considered by the Tribunal in the appellant's own case for the previous period from July 2003 to March 2008 in M/S. SRM INSTITUTE OF HOTEL MANAGEMENT VERSUS CCE ST, CHENNAI-III (VICE-VERSA) 2018 (4) TMI 1501 - CESTAT CHENNAI and the matter was remanded due to lack of clarity. We are not able to understand whether separate fees are collected from students for this course. The order is not clear as to the details of demand in regard to this course. The appellant has not been able to show as to what portion of the demand is covered by the fees collected for the course approved by the Industries Department. We find that this issue also requires to be remanded. Matter remanded to the adjudicating authority for denovo consideration - the appeal is allowed by way of remand.
Issues Involved:
1. Whether the appellant is liable to pay Service Tax under the category of "Commercial Training or Coaching Services". 2. Whether the demand of Service Tax on the Arts and Craft course conducted by the appellant is sustainable. Summary: Issue 1: Liability to Pay Service Tax for Hotel and Catering Management Courses The Department alleged that the appellant, M/s. SRM Institute of Hotel Management and Catering Technology, provided training courses in Hotel and Catering Management that were not recognized by any statutory authority and did not lead to a government-recognized diploma or degree. Consequently, the courses fell under "Commercial Training or Coaching Services" as defined in Sections 65(26), 65(27), and 65(105)(zzc) of the Finance Act, 1994. The appellant did not discharge the service tax on the income received from such services during the period from April 2008 to March 2012, leading to the issuance of a Show Cause Notice invoking the extended period for demanding Service Tax along with interest and penalties. The appellant argued that they are a separate wing of SRM Arts and Science College, a unit of M/s. Valliammai Society, a registered non-profit society, and that the courses in question were recognized by the University of Madras. They provided evidence, including registration certificates and documents showing the affiliation and degree awards by the University of Madras. However, the adjudicating authority ignored these submissions and held the appellant as an independent entity imparting unapproved courses. The Tribunal noted that the income details provided by the Department lacked clarity on whether the income was derived from the collection of fees for the courses. The appellant also failed to provide evidence that the income was from other business activities. Consequently, the Tribunal found that the matter required remand for further investigation and clarity. Issue 2: Demand of Service Tax on Arts and Craft Course The appellant contended that the one-year Arts and Craft course was conducted with the approval and recognition of the Industries Department of the State of Tamil Nadu, and thus, the demand for service tax was unsustainable. The Tribunal examined the permission letter from the Industries Department, which listed various subjects under the course, but found no clear evidence on whether separate fees were collected for this course and how it related to the demand. The Tribunal concluded that this issue also required remand for further investigation and clarity on the details of the demand related to the fees collected for the course approved by the Industries Department. Conclusion: The Tribunal set aside the impugned order and remanded the matter to the adjudicating authority for denovo consideration. The appellant was to be given sufficient opportunity to furnish details and for personal hearing. All issues were left open, and the appeal was allowed by way of remand. (Order pronounced in open court on 05.06.2023)
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