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TMI Blog2009 (5) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... hey will be given training”. This would mean that the person who is joining the company is being trained on the particular programme. – , it is very clear that the activities undertaken by the appellant in the case before us is nothing but training their own employees and hence, cannot get covered under the definition of ‘Commercial Training or Coaching Services’ - we find that, the impugned order which considers the appellant-company as a ‘Commercial Training or Coaching Centre’, is unsustainable and is required to be set aside - ST/212/2005 - 695/2009 - Dated:- 22-5-2009 - S/Shri T.K. Jayaraman, Member (T) and M.V. Ravindran, Member (J) Shri A.K.J. Nambiar, Advocate, for the Appellant. Shri K.S. Srinivasa, JDR, for the Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Cess to the tune of Rs. 60,71,040/- be not demanded from them and why penalties under Sections 76, 77 and 78 and interest under Section 75 be not demanded and recovered from them. The appellant contested the show cause notice before the Adjudicating Authority raising mainly contention that they are not 'Commercial Training or Coaching Centre' and they are producers of software products. The Adjudicating Authority did not accept the contention of the appellant and confirmed the Service Tax and imposed penalties and also sought to recover interest from the appellant but dropped the proceedings in respect of Service Tax liability on 'Intellectual Property Service'. Aggrieved by such an order, the appellants are in appeal before us. 3. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the agreement between the company and the individual which reads as under. "Clause 5 - Training: On joining the company they will have to undergo induction training programme covering ERP, our software Products, Quality, Software Engineering and Personality Development topics". It is his submission that this would indicate that the appellant is nothing but a training institute." 5. We have heard both sides and considered the submissions made at length. We also perused the records. The issue to be decided in this case is whether the appellant is covered under heading 'Commercial Training or Coaching Centre'. We may reproduce said definition as given under Section 65(105)(zzc) of the Finance Act, 1994. Section 65(105)(zzc): "Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining or coaching. This is also an important ingredient of the taxable service. A tax able service should be either training or coaching. We know the meaning of training or coaching. Training means imparting skill or knowledge in a particular field which is given in the definition of commercial training or coaching centre. There are several skills. For example, we can take spoken English. There are many centres which train people to speak English well. It is one example. It is a skill and if some training is imparted, then it is definitely a training. To train somebody in speaking English, to train somebody in solving mathematical problems, to train somebody in basics of computer. Hence, these are all included in a training. Then, that Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem in the private sector, health education are lucrative business. However, we find that education in the instant case is not a business. The primary object of GLIM is to impart education. Profit making is not its main motive. The refrain of the several judicial authorities cited is that profit motive characterizes a commercial concern as against general public utility in the case of a charitable organization. Therefore GLIM is not a commercial concern and the training or coaching provided by GLIM is not a commercial activity." From the ratio as reproduced above from our order, it is very clear that the activities undertaken by the appellant in the case before us is nothing but training their own employees and hence, cannot get covered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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