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TMI Blog2017 (3) TMI 1367X X X X Extracts X X X X X X X X Extracts X X X X ..... hwa, Member (Judicial) and Mr. Ashok K Arya, Member (Technical) Ms. Lalitha Krishnamurthy, CA - For Appellant Mr. Sanjay Jain, DR - For Respondent ORDER Per Mr. Ashok K Arya : 1. The appellants are in appeal against the Orders-in-Original dated 16.03.2010 and 29.03.2010 respectively passed by Commissioner of Service Tax, Delhi. The matter concerns with the liability of service tax for the services rendered by the appellants under the category of Commercial Training and Coaching services. 2. The appellant is represented by Ms. Lalitha Krishnamurthy, ld. consultant and Revenue is represented by Ld. AR, Mr. Sanjay Jain. 3. The Ld. consultant based on appeal memo inter alia submits as under:- i. The appellant runs various courses which lead to award of degrees of University of London, Allahabad Agriculture Institute (deemed University) ii. Along with above courses, they also run British English Certificate course and personality development courses. iii. The degrees awarded by University of London and Allahabad Agriculture Institute for their courses are equivalent and at par with undergraduate and Honours degrees of various universities. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f a certificate and includes coaching or tutorial classes but does not include preschool coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognised by law for the time being in force; The services provided by such a commercial training and coaching centres‟ are taxable under the provisions of Section 65 (105) (zzc) of the Act, where it inter alia says that the taxable Service means any service provided or to be provided to any person, by a commercial training or coaching centre in relation to commercial training or coaching; 5.2. The appellant is arguing that they are not covered by the definition of commercial training or coaching centre given in Section 67(27) of the Act, because they are the institute or establishment who are conducting the courses where degrees like B.Sc., BBA, MBA are awarded by University of London, Allahabad Agriculture Institute, though they are running some additional courses also on English teaching and personality development. It is a fact that the appellant is mainly running courses leading to awarding of degrees by University of Londo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority, Commissioner of Service Tax for quantification of demand of service tax and imposition of penalty, if any, for the period of one year preceding to the date of Show Cause Notice. The adjudicating authority shall decide the same afresh after giving the necessary opportunity of personal hearing and production of documents, if any, to the appellant. 5.5 In the result the appeals are allowed by way of remand in above terms. (Archana Wadhwa) Member (Judicial) (Ashok K Arya) Member (Technical) Per Archana Wadhwa: 6. After having gone through the order proposed by my learned brother Shri Ashok K Aarya, I agree with him as regards the non-applicability of extended period of limitation. However, as regards merits of the case, I have a different opinion. As I feel that my learned brother has not gone into the detailed facts and the legal pleadings made by the appellant, I proceed to deal with the same. 7. As per facts on record, the appellant is registered with the Service Tax department under the category of Commercial training and coaching services . As per the audit conducted by the department, it was found that appellant was discharging the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld award the degree. It is their contention that the appellant is affiliated to and granted permission by the prestigious London School of Economics and Political Science to teach for degree / diploma prescribed by the University of London. The said degree / diploma are treated equivalent to and at par with graduation degree/ diploma of various public Universities of India and are duly recognized as per Equivalence of foreign degrees brought out by the 'Association of Indian Universities (AIU)'. They have also placed on record, the information brochure of AIU. AIU is the only body in India which is recognized to grant equivalence of degree awarded by foreign universities. Acknowledging its role and work, the Ministry of Human Resources Development, Government of India vide Notification No. F.15-17/94 TS IV dated 13.3.1995 notified that those foreign qualifications which are recognized /equated by the AIU, are treated as recognized for the purpose of employment to post and services under the Central Government . 12. What is the meaning of recognized by law ? The said issue stand discussed by the Hon‟ble Delhi High Court in the case of Indian Institute of Aircra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Central Act, a Provincial Act or a State Act and includes any educational institute as may, in consultation with University concerned, be recognized by the Commission in accordance with the regulations made in this behalf under the Act. As such, it is seen that UGC Act does not state anything about recognition of courses or degrees/diplomas. AICTE only recommends technical curriculum and other criteria for technical courses to be offered by technical colleges. As such, the said circular of the Board is not at all applicable to the facts of the present case. 14. It is a matter of common understanding that degree awarded by Harvard, Oxford or Cambridge Universities are recognized by law for the time being in force in India. Same are recognized for higher education in many Indian universities and merely because such University are not recognized by UGC or AICTE, it cannot be said that degree awarded by them are not recognized in India. Learned Counsel appearing for the appellant has drawn our attention to a website of UGC which has issued an advisory for Indian students seeking admission in foreign universalities/ institutions which states that all Indian students wishing to purs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of the discussions in the preceding paragraphs as also in view of the fact that degrees being awarded by the London School of Economics and Allahabad Agricultural Institute are recognized by law, I am of the firm opinion that no service tax liability would get fastened against the appellant in respect of such two courses. 17. Further a part of the service tax demand relates business English course, which relates to the grant of certificates from University of Cambridge and the Personality Development course which provides skill to develop confidence, the appellants have claimed that said courses, which enable the candidate to procure jobs are exempted inasmuch as the same are vocational training institute. It is seen that the said issue was also considered by the Commissioner (Appeals) wherein he has referred to the Board Circular No.107/01/2009 dated 28.1.2009 which reads as under: The vocational training institutes are exempted from service tax vide notification No.24/2004-ST dated 10.9.2004 (as amended). By definition, such institutes should provide training or coaching that imparts skill to enable the trainee to seek employment or undertake self-employment, directly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d has further clarified as under: 2.2.3 Certain doubts have been raised in case of commercial coaching and training in this regard, the following is clarified. Whether service tax is leviable on institutes providing commercial coaching in addition to recognized degree courses. Some institutes like collages, apart from imparting education for obtaining recognized degree / diploma / certificates also impart training for competitive examinations, various entrance tests etc. It is clarified that by definition, such institutes or establishments, which issue a certificate, diploma or degree recognized by law, are outside the purview of commercial training or coaching institute . Thus, even if such institutes or establishments provide training for competitive examinations etc., such services rendered would be outside the scope of service tax. 20. From the above, it has now become clear that the principles elucidated by the above Circular would hold good during the period under dispute. 18. As already observed the said decision of the Commissioner (Appeals) stand accepted by the Revenue and as such, I am of the view that even in respect of said c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial) held that the courses provided by the appellant resulted in the issue of degree by the University of London (London School of Economics) which is recognised by law in India. She relied on various communications of UGC and AIU to hold that the degree which was issued, on completion of course is recognized as equivalent to degrees issued by Indian Universities or Institutions. Reliance was also placed on the decision of the Commissioner (Appeals) order dated 30.01.2014 wherein it was held that the courses offered by the appellant are recognized by law in India and as such the appellants would not fall within the ambit of Commercial Training or Coaching Centre, Regarding Business English Courses and Personality Development Courses, Member (Judicial) held that as appellant will not fall under the category of commercial training or coaching centre, no service tax liability can arise on such courses offered by the appellant. 5. On the first issue, regarding courses offered by the appellant resulting in the degrees/diplomas awarded by University of London, I find that these degrees/diplomas are to be considered as recognized by the law for the time being in force. It is noted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alence of the degrees and diplomas awarded by accredited Universities abroad. The degree/diploma programmes offered by the appellant resulting in the issue of certificate by the University of London (LSE) which is treated as equivalent to degree or diploma of public Universities in India. As such, I find that the appellants will fall outside the scope of definition for commercial training or coaching centre. It may be noted here that even the impugned order indicated that the certificate and diplomas issued by LSE are recognized by all the national universities. However, the adjudicating authority did not consider his own finding as relevant and followed the Board circular which refers to the recognition by statutory authorities like UGC etc. 8. It is relevant to note here that the department has been taking consistently a view that when an educational institute is affiliated to a university/institution awarding a degree recognized by law, then the said institute is not a commercial training or coaching centre. Reference can be made to circular No.26/2003 28.08.2012 and 26.02.2010 of the Board. Admittedly, the appellants were providing course resulting in the award of B.Tech, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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