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TMI Blog2018 (4) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... ough three types of Institutions as follows:- (a) Junior Colleges which are wholly established by the appellants themselves. (b) Junior Colleges (associated with the appellants Society) and established by various other Societies. (c) Coaching Centers - These centers were established in locations inside and outside the State of Andhra Pradesh in order to prepare students so as to enable them to appear for various competitive exams but for the period concerned in these appeals 2011 to 2015, these coaching centers were not functionable. 4. The appellants Society, through their own Junior Colleges and the junior colleges of other societies under its management imparts education to the students for intermediate courses; are recognized by the Andhra Pradesh Intermediate Board for providing education for 11th and 12th standard students; they follow guidelines for the syllabus prescribed by the Andhra Pradesh Intermediate Board conducts regular internal assessments, follows a standard admission procedure and imparts education on various subjects as per the guidelines of Intermediate Board. Appellants Society in certain junior colleges also provide residential schooling. Various courses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and for National Entrance Examination are distinct activities and coaching for such entrance examinations does not lead to issue of any certificate recognized by law; appellant on one hand are coaching and training students for various examinations like EAMCET, IIT etc and on the other hand charging much higher fees than what has been stipulated by the Intermediate Board; the exclusion in the definition of Commercial Training and Coaching Center have been deleted and Notification No. 33/2011-ST grants an exception which is not applicable to appellant and from 01.07.2012 the activity rendered by the appellant is covered under the definition of service and the said services does not fall under any entry in the Negative List or mega exemption notification. The adjudicating authority after following due process of law confirmed the demands raised along with interest and also imposed penalties. Subsequently, a corrigendum was issued on the basis of details of the fees collected by the appellant under various Head indicated in the balance sheet and fee deductions were allowed by the adjudicating authority. It is against these deductions, Revenue is in appeal while the appeals of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said services is palpably noticed from the fact that GST regime has completely exempted the service tax liability on the education sector. It is his further submission that the Commissioner in his order-in-original has recorded the finding that various fees were collected, it would fall under the category of Commercial training or coaching center service where gross fees receivable and hence includable in taxable value is totally incorrect as provision of Section 67 of the Act which subservient to Section 66 and Section 65, service tax needs to be determined on the value of taxable services. 7.2 It is also the finding of the lower authority that the appellant is liable to pay service tax for the services received by them like legal services, manpower recruitment or supply agency services, renting of immovable property services under reverse charge mechanism. It is his submission that these services are not taxable in the hands of the appellant as Mega Exemption Notification No. 25/2012 exempts the taxable services to any other entity other than the business entity and appellant being a registered society providing education and being a charitable trust cannot be held as business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brought to our notice the Intermediate certificate issued by the appellant to various students, list of all junior colleges wholly established under appellant's society, list of all junior colleges associated with appellant's society, copy of the documents evidencing recognition provided by Andhra Pradesh Intermediate Board, sample copy of T rolls and mark sheet issued, copies of prospects for the different years. It is undisputed that all these documents were produced before the lower authorities and details thereof were explained appellant's Counsel demonstrated the same before the Tribunal by taking two examples. Production of these documents before the lower authorities is not disputed and perusal of sample copy of T rolls and mark sheet as is given to various students indicate that the said mark sheet is issued by the Board of Intermediate Education, Andhra Pradesh jointly with the signature of the Principal of the College/Jr. College/ Society affiliated with the appellants and the computerized merit list also includes the Intermediate pass certificate cum memorandum of marks sheet issued to the students who appeared for the intermediate education of Andhra Pradesh. Mere peru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading of the notification is that the 'coaching or training' should lead to issue of a certificate / degree / diploma or educational qualification recognized by law. It is significant that, post 1.5.2011, even the controversy relating to 'issue of certificate / degree etc.' is settled in favour of the appellant as the notification clearly provided that the coaching or training should 'lead' to issue of a certificate etc. 17. It is settled law that if the plain meaning of the exemption notification covers the assessee, the benefit should be allowed. 18. In fact, the Commissioner himself admits that the appellants are not liable to pay service tax in respect of the 'intermediate courses' but are liable to pay service tax on the coaching / training provided for entrance examinations. As there is no break-up of the fees for Intermediate and entrance courses, the demand stands confirmed on the entire fees collected by the appellats. 19. It is submitted that the fees collected by the appellants cannot be artificially split and a portion thereof allowed exemption from service tax and another potion cannot be subject to service tax. In the case of Commissioner of Central Excise v. Larse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 66D of the Finance Act specifies the list of services that are not taxable. The relevant portion of Section 66D of the Act is reproduced below for ready reference: Negative list of services 66D. The negative list shall comprise of the following services, namely: - 'services by way of- (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognized bv an)? law for the time being in force; (iii) education as a part of an approved vocational education course; 27. The Mega Notification No. 25/2012-S.T. dated 20.6.2012 exempted certain taxable services from the whole of the service tax leviable thereon under Section 66B of the Finance Act, 1994. 28. As per S1 NO.9 of the Mega Exemption Notification No. 2512012-S.T, dated 20.6.2012, any service by way of 'auxiliary educational services' or renting of immovable property services provided to an educational institution or provided by an educational institution in respect of education exempted from service tax shall also be exempt from the payment of service tax. Further, auxiliary educational services have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sponsored by the Government; (iii) security or .cleaning or house-keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; 37. Further, the definition of "auxiliary educational services" was omitted from the mega exemption Notification No. 25/2012. At the same time, the definition of "educational institution' was introduced through the Notification No. 6/2014 which read as under: '(oa) "educational institution" means an institution providing services specified in clause (I) of section 66D of the Finance Act, 1994 (32 of 1994).' 38. The exemption provided under Mega Exemption was subject to Section 66D of the Finance Act, 1994. It is submitted that the amendments brought in the Mega exemption from time to time did not have any impact on the Entry 9 in Negative List under Section 66D of the Finance Act, 1994 is an acceptable proposition. 39. Therefore, essentially an activity by an 'education institution' as defined with reference to Section 66D of the Finance Act, 1994 was outside the purview of service tax and the Appellants are squarely covered in the ambit o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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