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2024 (6) TMI 765 - AT - Service TaxIssues Involved: 1. Liability of service tax on Post Graduate Programme in Public Policy and Management (PGPPM), Post Graduate Programme in Enterprise Management (PGPEM), and Executive Post Graduate Programme in Management (EPGP) for the period 01.05.2011 to 30.06.2017. 2. Whether the demand dated 13.10.2015 is barred by limitation. Summary: Issue 1: Liability of Service Tax on PGPPM, PGPEM, and EPGP: The appellants provided various long-term management programs but did not pay service tax on the fees collected for these courses. The department alleged that these courses were taxable services u/s 65(26), 65(27) read with Section 65(105)(zzc) of the Finance Act, 1994, and later u/s 65B(44) from 01.07.2012. The Commissioner dropped the demand for the Post Graduate Programme in Management (PGP) based on Notification No.9/2016-ST and Circular No.334/8/2016-TRU but confirmed the demand for PGPPM, PGPEM, and EPGP, stating that these courses were not recognized by law. The appellants argued that these programs were recognized by the Government of India and other authorities, hence should be exempt. However, the Commissioner held that the appellants failed to produce evidence that these courses were recognized by law. The Tribunal agreed with the Commissioner, stating that the courses were not recognized by any authority empowered to grant such recognition and were not equivalent to MBA or Ph.D. degrees, thus not exempt under the relevant notifications and negative list provisions. Issue 2: Limitation: The Tribunal found that the frequent changes in law and clarifications issued by the Board indicated that the issue involved interpretation of law. Hence, alleging suppression of facts was not sustainable. The demands were restricted to the normal period of limitation, and penalties were set aside. Conclusion: The Tribunal upheld the confirmation of demands with interest for the normal period of limitation and set aside the penalties. The appeals were remanded for the limited purpose of determining tax for the normal period of limitation with interest.
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