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TMI Blog2018 (3) TMI 1011X X X X Extracts X X X X X X X X Extracts X X X X ..... re the investigating authorities - IIPM clearly falls under the definition of Commercial Training or Coaching Centre as defined in law Section 65 (27) and the services rendered by them are liable to Service Tax. Time limitation - whether extended period of time could be invoked in the present case for confirmation of Service Tax demand? - Held that: - It is on record that IIPM neither took registration nor registered themselves with Department up to 22/07/2005. On the said day the registration was taken only at Bangalore even though IIPM has Institutes in many other places. They also did not pay any Service Tax or file ST-3 Returns even though the tax on Commercial Training or Coaching Centre was levied w.e.f. 01/07/2003 - Since they have failed to obtain registration or file returns or even intimate the Department of the activities undertaken, the Department is fully justified in issuing show cause notice to demand of Service Tax along with interest by invoking the extended period of time - extended period rightly invoked. Demand upheld - appeal allowed - decided in favor of Revenue. - Appeal No. ST/532/2012-DB ST/CROSS/2349/2012 - Final Order No. 51033/2018 - Dated:- 20-3- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elow:- i. The investigation undertaken by the DGCEI has concluded that IIPM were charging huge amounts of about ₹ 5 Lakhs per student in the case of MBA-2 Years Courses and around ₹ 8 Lakhs to 9 Lakhs per student in respect of BBA-3 Years courses. These facts have been deposed by Shri Shouvick Duta, Dean, IIPM. ii. The academic courses conducted by IIPM are not approved by All India Council of Technical Education (AICTE) which is under Ministry of Human Resources Development. The Institute is also not affiliated to any University or recognized by UGC or any State or Central Act and they are not following any of the regulations of AICTE, UGC etc. These facts have been declared by IIPM in their prospectus as well as advertisement routinely released in newspaper. iii. In view of the above, since the training courses conducted by IIPM do not result in award of any certificate/ Diploma/ Degree or any other educational qualification recognized by the law being in force, the activity will fall under the category of Section 65 (105) (zzc) of the Act and is a taxable service liable to payment of Service Tax. 4. The findings of the Adjudicating Authority leading to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IPEDIA, he argued that the term Education‟ has a very wide meaning and includes all modes of learning. He submitted that any kind of learning through any course conducted by any institute which is not covered by exclusions in Section 65 (27) will be liable to Service Tax. Since the degrees awarded by IIPM for its academic courses are not recognized by law, Service Tax is liable to be paid on such fees recovered. iv. He also relied on the Tribunal decision in the case of M/s Unitech Southcity Educational Charitable Trust and others V/s CST (Adj.), New Delhi vide Final Order No. 55907-55911/2017 dated 17/08/2017 wherein the Tribunal has upheld the demand for Service Tax in respect of courses run by the appellant in that case which resulted in award of degree by the University in U.K. 7. He also filed written submissions dated 08/03/2018 in which he has mainly contended as follows:- 7.1 The Adjudicating Authority has erred in making a distinction between Academic Education vis-a- viz Training or Coaching - The adjudicating authority erred in citing the situation of a secondary school or a degree college to make such distinction and observing that such an instit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also educate themselves . The above clearly shows that acquisition of knowledge or skills through training or coaching clearly falls within the follicles of the taxing entry. The only exceptions provided are sports and the training or coaching which results in grant of certificate or diploma or degree recognized by law. 7.3 The activity of the respondent does not fall under any exception or exemption:- It may be seen that the only exception/exemption which the Finance Act provides are as follows:- (a) Commercial training and coaching in the field of sports. (b) Commercial training and coaching resulting in grant of certificate or diploma or degree which is recognized by law. (c) Commercial training and coaching which are vocational in nature. The activity of the respondent does not fall in any of the above and hence, would be charged to service tax. The Revenue also relies on the Final Order No. ST/A/55907-55911-CU[DB] dated 17.08.2017 . 8. Shri Amit Singh, Ld. Advocate appearing for the respondent on the strength of his written submission, submitted as follows:- i. He justified the impugned order in which Service Tax demand has been substantially dropped ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l training or coaching centre;‟ (27) commercial training or coaching centre means any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes but does not include pre-school coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognized by law for the time being in force.‟ The taxable service was defined in Section 65(105)(zzc) as follows :- (zzc) any service provided or to be provided to any person, by a commercial training or coaching centre in relation to commercial training or coaching. An explanation was inserted in sub-clause (zzc) vide Finance Act, 2010 retrospectively with effect from 1-7-2003 which read as follows :- Explanation. - For the removal of doubts, it is hereby declared that the expression commercial training or coaching centre occurring in this sub-clause and in clauses (26), (27) and (90a) shall include any centre or institute, by whatever na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h issues any certificate or any educational qualification recognized by law for the time being in force. But it is an admitted position that the certificates and degrees awarded by IIPM and also by IMI, Europe do not enjoy the recognition from AICTE or UGC. These facts have been declared by IIPM in their prospectus and advertisements and such facts have been admitted by the Dean of IIPM in his statements before the investigating authorities. Therefore, IIPM clearly falls under the definition of Commercial Training or Coaching Centre as defined in law Section 65 (27) and the services rendered by them are liable to Service Tax, and we hold accordingly. In respect of the few management courses conducted by IIPM which are categorized by the Adjudicating Authority himself as other than academic, Service Tax demand has already been confirmed in the impugned order. 13. The Ld. Advocate appearing for the respondent has relied on the decision of the Hon ble Delhi High Court in the case of Delhi Music Society (supra). He has argued that even though the respondent is an Educational Institution, they cannot be considered as Coaching or Training Centre. After perusing the decision of the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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