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TMI Blog2018 (1) TMI 1205X X X X Extracts X X X X X X X X Extracts X X X X ..... d that coaching/training imparted for acquiring skills in English language definitely improves better chances to seek employment. The appellant is eligible for the exemption as per the N/N. 24/2004-ST - appeal allowed - decided in favor of appellant. - ST/302/2010 - Final Order No.40129/2018 - Dated:- 16-1-2018 - Ms. Sulekha Beevi, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri S. Muthu Venkataraman, Adv.,Ms. Minchu Punnoose, Adv. for the Appellant Shri R. Subramaniyam, AC (AR) for the Respondent ORDER Per Bench The appellant which is a proprietorship concern has branches in various places in Tamilnadu and is a training centre for communicative English, Personality Enhancement, IELTS and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. The appellant sought a clarification from the department whether their activity is liable to service tax and the department clarified that vocational training institute imparting foreign language skills are not liable to tax. SCN was defended by the appellant contending that being a vocational training institute they are exempted from payment of service tax under Notification No.24/2004-ST dated 10.09.2004. The same was not considered by the authorities below on wrong interpretation of the said notification. He argued that since the trainees are able to seek self-employment as well as placement in BPOs and other sectors, their institute falls under the category of vocational training institute and is liable for exemption under Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le the trainee to seek employment or self-employment directly after such training or coaching. The Tribunal in the case of Maria Computer Systems Pvt. Ltd., had an occasion to consider a similar issue. The Notification No. 24/2004 has been further amended vide Notification No. 3/2010-ST dated 27.02.2010, in which the term vocational training institute has been clarified to mean an Industrial training institute or an Industrial training centre affiliated to the National Council for vocational training . The period involved is prior to 2010. In Maria Computer Systems Pvt. Ltd., the Tribunal observed that coaching/training imparted for acquiring skills in English language definitely improves better chances to seek employment. Needless to say, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... training or coaching centre which provides training or coaching relating to recreational activities such as dance, singing, martial arts or hobbies. In the Explanation to the Notification, the term Vocational Training Institute has been defined as one which provides vocational training, which will enable the trainee to seek employment or undertake self-employment directly after such training or coaching. It is common knowledge that acquiring skills in English language definitely improves better chance to seek employment. In this view of things, it is possible to say that the services rendered by the appellant could be covered by the notification. However, the discussions in the impugned order centered around the Circular dated 20-6-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0. As such, the amendment can have no effect for the period of demand. 5.2 Similar view has been taken in the case of British School of Language (supra) and relevant portion is reproduced as under:- 5. We have heard both the sides and perused appeal records. Admittedly, the appellants provided commercial coaching or training service as covered by the tax entry cited above. The dispute is regarding their eligibility to exemption Notification No. 24/2004-S.T., dated 10-9-2004, and prior to that for Notification No. 9/2003-S.T., dated 20-6-2003. The Lower authorities denied the exemption on the ground that no skill is being imparted by the appellant. It was held that the appellants are only engaged in coaching in English language and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng centre which provides training or coaching relating to recreational activities such as dance, singing, martial arts or hobbies. The ld. Consultant argued that children of age of 6 to 12 were sent for part-time coaching, with the appellant, in English Language skills and this can be categorized in the general scope of hobbies. We find that there is merit in the submission made by the appellant. Learning a language or improving skills in a language will fall under the broad category of hobbies for children. 6. Following the dictums laid in the above two decisions, we are of the view that the appellant is eligible for the exemption as per the Notification No. 24/2004-ST. The demand is unsustainable and requires to be set aside. The imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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