9911796707
TMI BlogWhether the coaching for the PGPM course or part time students in the Executive MBA course come within the 'commercial training or coaching' and liable to service tax?X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the coaching for the PGPM course or part time students in the Executive MBA course come within the 'commercial training or coaching' and liable to service tax? - Commentaries / Editorials Dated:- 12-10-2008 - News - In the matter of M/s GREAT LAKES INSTITUTE OF MANAGEMENT LTD. Versus COMMR. OF S.T., CHENNAI reported in 2008 -TMI - 3914 - CESTAT,CHENNAI , honorable tribunal has held that: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "6. We find that the appellants are recognized as a charitable organization under the Income Tax Act, 1961. Though the appellants earned some surplus income from the activity of imparting education, we hold that activity they are engaged in is predominantly one of public utility benefiting eligible youth thereby sub-serving a much larger interest of providing useful talents to the industry a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd ultimately the economy of the country. No individual is gaining any monetary benefit out of the activity of GLIM. The appellants are housed in a small facility in Saidapet and propose to re-locate to spacious premises and own building to be constructed. They have already allocated most of the savings to achieve this objective. We find that the appellants are acting strictly in accordance wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the MOA, imparting quality education which has received well deserved recognition. 6.1 Healthcare and education are social services essential to provide minimum quality of life to the people of a country. As the demand for these services cannot be met by the Public Sector alone, private sector fills the gap. For most of them in the private sector, health education are lucrative business. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raining or coaching provided by GLIM is not a commercial activity. In the view we have taken of the issue on merits we do not consider it necessary to examine the question if the demand is time barred. In the circumstances, we set aside the impugned order and allow the appeal filed by M/s. Great Lakes Institute of Management." Now the department has filed an appeal before the honorable Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court ( 2008 - TMI - 31008 - SUPREME COURT OF INDIA ) Apex court may decide the issue in due course, but we are of the view that all the service providers should continue to follow the CESTAST ruling as above with caution till final wordings from the Supreme Court. - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
