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TMI Blog2014 (4) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... ospective effect. It is also relevant that several decisions were rendered in favour of the assessees under similar facts and circumstances of being non-profit or charitable in nature. Such cases were challenged before the Apex Court. The Apex Court, during the pendency of the appeals in view of the amendment by the Finance Act, 2010 remanded the appeals for fresh adjudication in view of the amendment. Thus, it is found that there is no contumacious conduct or active disregard of the provisions of law in complying with the provisions of the Act or Rules. Thus, penalties imposed under Sections 76, 77 and 78 are set aside, there being reasoned cause for non-compliance and non-payment of tax as provided under Section 80 of the Act. Penalty waived while confirming the demand of service tax - Decided partly in favour of assessee. - Appeal No.ST/168/10 & ST/204/12 - Final Order Nos. A/184-185/2014-WZB/C-I(CSTB) - Dated:- 6-3-2014 - P R Chandrasekharan and Anil Choudhary, JJ. For the Appellant : Shri Badri Narayan, Adv. For the Respondent : Shri Rakesh Goyal, Addl. Commissioner (AR) JUDGEMENT Per: Anil Choudhary: These appeals are directed against Order-in-Or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lectures, workshops and other education programme necessary for instructions of people in such systems of training, to give scholarships and assistance to students, to provide accommodation and hostels for trainers and students and to generally promote the cause of education and to take over the identical existing business of est of India' carried on by Asti Educational Company Pvt. Ltd. at Bombay where the promoters are the only Directors. 2.1 That Article 5(1) of the Memorandum of Association provides that the income and property of the company whensoever derived, shall be applied solely for the promotion of its objects as set forth in the memorandum. 2.2 The appellant conducted courses for which they collect fees for participation. The Revenue felt that the appellants were engaged in providing commercial training and coaching services' which have been brought under the net of Service Tax w.e.f. 1.7.2003. The appellants have not registered themselves with the Service Tax department nor have paid the Service Tax amount under the provisions of the Act. Show-cause notice dated 2.2.2007 was issued for the period 1.1.2006 to 31.12.2006 demanding Service Tax and Edu. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed the proposed demand of tax along with interest. Further, penalty was also imposed under Sections 76, 77 and 78 of the Finance Act, 1994. It was found that the appellants were engaged in imparting education and training, in which the participants were educated and trained to discover and manifest fullest potential for excellence in their relationship. The appellants have charged fees from the participants for imparting the education training. He also found that the programme is designed to bring about a fundamental shift in what is possible in one's life. The syllabus of training consist of topics amount other like orientation and overview, the hidden power of context, the various circle, rackets, change vs. transformation etc. The curriculum for the workshop/seminar clearly established that the training programmes follow a pre-decided syllabus. Thus, the appellants were engaged into imparting education and training which is akin to personality development and the same cannot be equated with spiritual discourse or philanthropic service as claimed by the appellant. As per the definition of commercial training or coaching service, the same includes imparting of skill or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Being aggrieved by the aforementioned Orders-in-Original, the appellants have preferred appeals before this Tribunal on the following grounds:- (i) The show-cause notice does not mention as to what is the activity undertaken by the appellant which is sought to be taxed by the department and hence the notice is vague and cryptic. Thus, the impugned order is vitiated and fit to be set aside. (ii) The appellants are not a commercial coaching centre or commercial training centre. There being basic difference between the programme conducted by the appellant and the commercial coaching or training centre or institute. The programmes conducted are designed for participants to gain freedom , to achieve peace of mind and power within . On the other hand, commercial training or coaching centre trains students to achieve scores or marks that are relative and the performance of the students can be measured and compared. (iii) That the appellant does not prepare students or participants for the particular exam and the activity of the appellant being in the nature of discourse and orientation programme for improvement of personality and is somewhat similar to the discou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly argued that the course fees of the appellant should be considered as cum-tax for the purpose of levy of Service Tax in case the appellants are found to be leviable to Service Tax. Reliance is also placed on the Final Order No. A/418/13/CSTB/C-I dated 11.3.2013 of this Tribunal in the case of I2IT Pvt. Ltd. where in identical facts the benefit of cum-tax calculation was extended. Reliance is also placed in view of the Trade Notice No. 20 of 2002 dated 22.5.2002. 4.1 As regards penalty, it was stated that the issue involved in the appellant's case is purely a question of interpretation of law. During the period in dispute, there are several decisions of the Tribunal holding that non-commercial institutes like the appellant providing training or coaching were not taxable. Reliance is also placed on the ruling of the Tribunal in the case of Great Lakes Institute of Management Vs. Commissioner of Service Tax - 2008 (10) STR 202 (Tri-Chennai), ICFAI Vs. Commissioner of Central Excise - 2009 (14) STR 220 (Tri) . 4.2 Further, the liability of tax as non-commercial organization and a non-private organization was clarified by the Govt. only by amendment vide Finance Act in 2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld (excluding sports) irrespective of whether such imparting of skill, knowledge or lessons is in respect of particular discipline or a broad spectrum of disciplines/academic areas; irrespective of the nomenclature or description of the institute or establishment as a coaching or training centre or an educational institution; regardless of whether an institute or establishment is incorporated by or registered under any law; and irrespective of distinctions on the basis of curriculum, course content, teaching methodology, course duration or otherwise. Activities of imparting skills, knowledge, lessons on any subject or field or when provided by any entity, institution or establishment which is excluded by a specific and legislated exclusionary clause would alone be outside the fold of the taxable activity. 6. Having considered the rival submissions, we are of the view that the activity of the appellant is liable to tax under the provisions of the Finance Act, 1994 as section 65 (27) of the Act provides imparting of coaching or training in any skill or knowledge or lessons on any subject or field other than sports. Thus, the activity of the appellant is squarely covered under the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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