9911796707
TMI Blog2018 (11) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... e Service Tax Total Service Tax 01.04.04 01.04.09 to 30.09.09 01.04.04 to 31.03.08 01.04.09 to 30.09.09 Demand on income from Insurance Companies 1,36,88,687 10,16,999 1,47,05,686 16,38,853 1,04,751 17,43,604 Demand on income from Indira Gandhi National Open University (IGNOU) 21,38,177 89,700 22,27,877 2,39,376 9,240 2,48,616 Income from Punjab Technical University (PTU) 6,58,555 0 6,58,555 67,173 0 67,173 Income from Indian Institute of Hardware Technology (IIHT) 88,98,119 0 88,98,119 10,51,472 0 10,51,472 Bitcom Tuition Fee 5,16,638 0 5,16,638 63,786 0 63,786 Bitcom Computer Hiring Charges from IGNOU 2,47,065 0 2,47,065 30,537 0 30,537 Miscellaneous Income (Scrap sale, library charges etc.) 54,485 0 54,485 6,542 0 6,542 Demand on income not forming part of profit & loss account of the appellant-wrong calculation of service tax. 0 2,79,100 2,79,100 0 28,748 28,748 Total 2,62,01,726 13,85,799 2,75,87,525 30,97,739 1,42,739 32,40,478 The said demand was confirmed by the original adjudicating authority vide Order-in-Original dated 31.10.2012. An appeal was preferred before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 65 (27) of the Finance Act, 1994 (an Act) as the said training is having the recognition of law and as such is covered under exclusion clause of Section 65(27) of the Act. This Tribunal has gone through the various provisions of IRDA Regulation 2000 and it is observed that to become an insurance agent the candidate has mandatorily to go for practical training from the approved institute. In the present case the appellant is also approved by the IRDA to impart the said training. Therefore we are of the opinion that for while providing training to insurance agents the appellants are not providing the service of Commercial Training and Coaching Center Service. The income derived from such service is therefore not taxable. The similar opinion has also been formed by this Tribunal while hearing the plea of stay vide order dated 08.06.2016. Resultantly we are of the opinion that the demand of Rs. 17,43,604/- as levied by the Department against the appellant for providing the Commercial Training and Coaching Services to the insurance company has wrongly been confirmed by the adjudicating authority below the same is accordingly is set aside. Demand on income from Indira Gandhi Nation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omparing to expression "Conferred by law" or "Conferred by Statue". To be covered under the term "recognized by law" the certificate/ degree/ diploma/ qualification is only required to be the product of a statue and the institute does not except it is sufficient that Institute has approval/ accreditation of some Institute constituted under statute. The Hon'ble Supreme Court in the case of Narsingh Pratap Singh Deo Vs. State of Orissa AIR 1964 (SC) 1793 and in another case R.S. Nayak Vs. A.R. Antulay 1984 (2) SCC 183 the Apex Court has held that law includes any ordinance, by law, rule, regulation, notification, custom or usage having force of law. Relying thereupon, we are of the opinion that since IGNOU and PTU are constituted in exercise of the legislative power the accreditation by them in favour of the appellant is very much covered under the terms "recognized by law". In view of this entire discussion even notification no 10 dated 26.06.2003 need not to looked into. We are therefore of the opinion that the demand confirmed by the authorities below under this head is also liable to be set aside. Demand on hiring charges recovered from IGNOU: It is submitted on behalf of appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etained by the appellant under commercial training or coaching services. The CA has impressed upon the copies of cheques given to IIHT with respect to service tax payment. It is also impressed upon that the IIHT has already discharged liability. The challans for the payment of tax by IIHT, as enclosed with the appeal, are impressed upon. It is further submitted that the demand of Rs. 10,51,472/- under this head will amount to double taxation of the transaction which will be against the spirit of taxation laws. In addition it is submitted that the course offered by the IIHT are vocational in nature and are exempted from taxability in view of notification no. 9/2003 dated 20.06.2003 and notification no. 24/2004 dated 10.09.2004. Finally relying upon the agreement of the appellant with IIHT the levy under this head is prayed to be set aside. 11. Ld. DR on the other hand has relied upon Commissioner Vs. WLC College India Ltd., 2015(1) TMI 1366-Delhi High Court & Commissioner of Central Excise, Jaipur Vs. Adam Smith Institute of Management (ICFAI National College) & others, 2017(12) TMI 901-CESTAT New Delhi. While justifying the order of commissioner (Appeals), he has prayed for confir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- as received under this head is received against the short term vocational courses provided by the appellant. The said service is exempted under notification no. 9 on 01.03.2003. Alternatively, it is argued that even if the service is considered as taxable still and exemption is available to the appellant being a benefit of SSP exemption under Notification No. 6 dated 01.03.2005. The demand is therefore prayed to be set aside. Per contra, Ld. DR has justified that demand qua this particular income. 13. After hearing both the parties, we are of the opinion that issue is no more res-integra. The Hon'ble High Court Delhi in the case of Commissioner YSWLC College India Ltd. 2015(1)TMI-1366-Del. H.C. which is also been relied by this Tribunal in the case of Commissioner of Central Excise, Jaipur Vs. Adam Smith Institute of Management (ICFAI National College) & others, 2017(12) TMI 901-CESTAT New Delhi has approved: "The specific term of what is meant by „vocational training‟ would include computer training institute or recreation training institute or a coaching centre," 10........... So long as the broad nature of the activity is to impact skill to enable the beneficiar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants are providing coaching and training at mega level even for the institutes of repute, any ignorance to the legal provisions about applicable taxability cannot be presumed on their part. Otherwise also ignorance of law is no excuse. When any service provider fails to comply with the provisions of the Finance Act, which make him liable to pay the service tax, the only conclusion drawn is that the same act is with an intent to evade duty. Otherwise also in the era of self assessment not declaring the income received against rendering the services amounts to the omission to self declare and thus the violation of provisions of law. The element of intent to evade duty in this circumstance cannot be ruled out and the same also amounts to suppression of facts. Seeing from this angle we hold that the Department was entitled to invoke the proviso of Section 73 of the Act. Hence, the Show Cause Notice is not barred by time. For the same reason the penalty imposed is held justified however to the extent of the demands that have been confirmed as taxable. 16. As a result of entire above discussion we hereby partly allow the appeal. The demand qua income from insurance company, IGNOU PTU ..... X X X X Extracts X X X X X X X X Extracts X X X X
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