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TMI Blog2018 (6) TMI 1303X X X X Extracts X X X X X X X X Extracts X X X X ..... the activity out of the exclusion. As far as ‘management and business consultancy service’ is concerned, it is seen that the consideration was received by them for various reports submitted by their students to outside bodies on conclusion of various projects as part of curriculum of the course. Undoubtedly, these may be of use to the outside entity but they are not the product of a professional business consultant. Accordingly, the tax as provider of ‘management and business consultancy’ may not sustain. Time Limitation - Held that:- The appellant themselves having made a full disclosure of these circumstances to the service tax authorities and they were guided entirely about the tax liability exists; it cannot, by any stretch, be found that appellant had misrepresented to the competent authority - extended period of limitation cannot be invoked - duty liability restricted for normal period. Appeal allowed in part. - Appeal No. ST/87199/2013 - ORDER NO. A/86770 / 2018 - Dated:- 21-6-2018 - Hon ble Shri S K Mohanty, Member ( Judicial ) Hon ble Shri C J Mathew, Member ( Technical ) Shri Yogesh Patki, Advocate for appellant Shri M K Sarangi, Additional Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther contention even if it was otherwise, the course, being one that prepares students for professional employment or self employment is a vocational course that was excluded from tax prior to 26th February 2010. According to Learned Counsel, the basis on which original authority confirmed the demand for the lack of approval from All India Council for Technical Education is not sustainable in view of the decision of the Hon'ble Supreme Court in Association of Management of Private Colleges v. All India Council for Technical Education [2013 (8) SCC 271] which held that Master of Business Administration not being a technical course that pre-requisite cannot be insisted on. Circular of Central Board of Excise and Customs dated 20th January 2009, relied upon by the original authority, was also held to be inapplicable in view of the decision of the Hon'ble Supreme Court in Orient Paper Mills v. Union of India [1978 (2) ELT J345] to the effect that such circulars are not binding on the adjudicating authority. According to him, the need for recognition for affiliation to a university had been rendered unnecessary with the obtaining of approval from All India Council for Technical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Central Excise, Pune-III [2014 (33) STR 575 (Tri. - Mumbai)], Jay Ajit Charia v. Commissioner of Central Excise Service Tax, Surat-I [2015 (40) STR 1139 Tri. Ahm)] and Balaji Society v. Commissioner of Central Excise, Pune II [2015 (38) STR 139 (Tri.Mum)]. 6. On a perusal of the various decisions, it is seen that the consideration received from students enrolled for education are, owing to legislative intent, indeed taxable and that, to the extent of specific exclusion in the taxable entry, conformity with the description therein has to be strictly adhered to. That the appellant is a provider of training and coaching service is not disputed. Despite the inclusion of commercial in the description of the taxable service, the absence of a profit motive, does not, of itself, alter the tax liability. It suffice that earnings are received for an activity to be commercial. Non- availability of an affiliation for the award of a degree at the end of the course it takes the activity out of the exclusion. 7. In re Sadhana Educational and People Development Services Ltd. 4. We have considered the rival submissions and given considerable thought to the issue. At the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ek employment or self-employment after such training. All professional degrees/courses helps in seeking employment but that does not make them vocational courses. For example, M.B.B.S. or M.D. or M.S. Course helps in seeking employment or self-employment but these cannot be considered as Vocational Training. All Engineering Courses also helps in seeking employment but that does not make it vocational training. For example welding is a vocation but a post-graduate course is welding technology cannot be considered as vocational course. 5. We have gone through the content of the course, as submitted during arguments. It is seen the course is for a duration two years. The first year is common to all candidates. Thereafter they undergo summer training with some organization. In the second year, they undergo courses in one of the five disciplines/area of specialization viz. Financial Management, Human Resources, Management Manufacturing and Operations Management, and Systems Management. xxxx In the second year, courses though gets limited to the field of specialization but are again diverse, theory oriented and academic in nature. The content of courses can by no stretch o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration was received by them for various reports submitted by their students to outside bodies on conclusion of various projects as part of curriculum of the course. Undoubtedly, these may be of use to the outside entity but they are not the product of a professional business consultant. Accordingly, the tax as provider of management and business consultancy may not sustain. 10. Appellant has claimed that the bar of limitation would operate as there has been no suppression or misrepresentation on their part. Learned Authorised Representative counters by alleging that the appellant did conceal the fact of rejection of its application for affiliation despite which they continued to claim that they were in conformity with the exclusion clause in section 65(105). Reliance is placed on the decision of the Hon ble High Court of Delhi in Delhi Transport Corporation v. Commissioner of Central Excise Service Tax [2015 (38) STR 673 (Del.)]. While we are not inclined to accept the plea of the appellant that the decision of the Hon'ble Supreme Court about the nature of the course would take it out of purview of affiliation, it is clear that, as early as February 2006, the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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