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TMI Blog2014 (9) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... d are challenging the same. Appellants view is that intermediate course is the main course and Commercial Coaching is incidental. Under these circumstances, we consider that if the appellant deposits an amount of 6 crores within 8 weeks and report compliance, that would be sufficient for hearing the appeal. Accordingly the appellant is directed to deposit an amount of 6 crores (Rupees Six Crores only) and report compliance on 16.12.2014. - Requirement of pre-deposit of balance dues is waived and stay against recovery is granted. X X X X Extracts X X X X X X X X Extracts X X X X ..... ended with retrospective effect and the amendment made in 2010 was given effect right from 2003. As a result of the amendment, the commercial training or coaching given by any organization for consideration became liable to tax. Since the definition has undergone changes and the period under consideration before us is 01.04.2011 to March 2012, and only a small period is covered prior to the amendment, it may be appropriate to consider the case by considering the definition and the exemption notification as they have come into force w.e.f. 01.05.2011. At this stage we have to take note of the fact that period prior to 01.05.2011 we have been following the decision of the Honble Supreme Court whereby the Honble Court had directed the appellant to deposit 1/3 of the tax demanded. Today the question before us is whether the 1/3 of the amount is to be deposited for hearing the appeal or there is a change in circumstances after 01.05.2011. 4. In the Order-in-Original, the following observations have been made: * The appellants have satisfied all the conditions provided for under the definition of Commercial Training or Coaching Center, i.e., they are an institute; provide commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s with the taxable service. * Fee collected towards tuition, games, lab, internal exams, teaching, sale of applications, fines, study material, other income, PRO collection a/c and gross fee receivable (Schedule 10) have a nexus with the taxable service and therefore includable in the taxable value. 5. The learned counsel on behalf of the appellant submitted that as regards the elements of fee which are not required to be taken into account for the purpose of demanding service tax on Commercial Training/Coaching has been decided by the Bangalore Bench vide Interim Order No. IO/46/2014 dated 28.02.2014 which stands referred to Third Member because of difference of opinion on other issues. Therefore he submits that the appellant has prepared a worksheet based on the decision of the Bench in the Interim Order and according to this, the appellants total liability of service tax may come to ₹ 10,71,65,822/-. However this was contested by the learned special counsel to which we will revert later. As already mentioned we would not be discussing the issue prior to 01.05.2011 since it has already been considered in an Interim Order passed and would attain finality after the Third M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance examinations). LEO is one of them. He submitted on the basis of this receipt that the appellants levy a composite fee on the intermediate courses as well as the training/coaching for the purpose of appearing in entrance exams. He also submits that the Government of Andhra Pradesh makes it compulsory that the intermediate students also be given coaching for entrance exam and therefore it cannot be said that the appellants are exclusively conducting any coaching classes. He also submitted that the separate commercial/training centres which were rendering by them have been discontinued and at present the courses conducted by them are part of the intermediate courses. 7. On going through the exemption notification which took effect from 01.05.2011, we find that the exemption is available only when coaching or training leads to a grant of certificate or diploma or degree or any educational qualification. The question is whether the courses conducted by the appellants leads to any diploma or degree or educational qualification. There cannot be any doubt that students who undertake intermediate course with the appellants, ultimately get an educational qualification namely intermedia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was also submitted that even intermediate classes are conducted in such a manner so that the students get the cut off mark required for appearing in competitive exams or to the extent the scoring is required for the entrance exams. Therefore even the course content of intermediate courses may not be the same as in the case of normal intermediate courses conducted by educational institutions. Therefore it was the submission by the learned special counsel that the entire fee structure except for the exclusions as per the Interim Order of the Tribunal is liable to tax and therefore he submits that appellants have not been able to make out any prima facie case. 9. We have already taken a view that prima facie we are not convinced that just because the appellants charged a composite fee and there is no break up details available, service tax cannot be levied on the Commercial Training or Coaching conducted by the appellants. At the same time we have to accept the fact that the issue needs a much more detailed consideration in terms of law, facts and the meaning of word such as 'leading to' used in the notification to come to any conclusion. Further the valuation will also be an issu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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