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TMI Blog2019 (2) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable for ‘vocational training institutes’ which have been defined as in ‘commercial training or coaching centre’ which provide vocational coaching or training that imparts skills to enable the trainee to seek employment or undertaken self employment directly after such training or coaching. We cannot think of a more practical job or self employment oriented training or coaching than management courses conducted by the appellant. The demand for the period July, 2003 to September, 2010 needs to be set aside - As far as the period October, 2010 to September, 2011 is concerned, the demand needs to be upheld as it is not covered by any exemption notification - The appropriate rate of interest has also to be paid - The question of penalty does not apply in this case as it is a demand for normal period under Section 78 - appeal allowed in part. - Appeal No. ST/26693/2013 - A/30137/2019 - Dated:- 29-1-2019 - Mr. M.V. Ravindran, Member (Judicial) And Mr. P. Venkata Subba Rao, Member (Technical) Shri S. Thirumalai, Advocate for the Appellant. Shri P.S. Reddy, Dy. Commissioner/AR for the Respondent. ORDER Per: P.V. Subba Rao. 1. This appeal has been file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elated issue is whether the appellant is entitled for the benefit of notification Nos. 09/2003- ST and 24/2004-ST. If the appellant is entitled to the benefit of these exemption notifications they would be exempted up to September, 2010. 5. On the first question of whether appellant is liable to pay service tax on commercial training or coaching services under Sec.65(105)(zzc) read with its explanation, the Tribunal-Bangalore has already held against the appellant. Similarly, on the question of invocation of extended period of demand, the Tribunal held that the proviso to Sec.73(1) was rightly invoked. It is also held that appellant is liable to penalty under Sec.78 of the Act but no penalties are imposable under Sec.76 and 77 of the Act. The findings of the Tribunal in short were as follows: The effect of the amendment to section 65(105)(zzc) of the Act seems to be a conceptual change with regard to the term commercial used in sections 65(26) and 65(27) of the Act. The change of law, which is substantial, has come about with retrospective effect from 01.07.2003; A line cannot be drawn to separate education from training coaching . It has not been est ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on given in the notifications 9/2003 24/2004 and claimed that the syllabi and curriculum of the courses offered by them were so designed that the individuals who undergo these classes would be imparted specialized skills. In many instances they would get direct employment after these courses. They also enclosed the list of the individuals who were offered campus placements in the managerial cadres in reputed organizations with handsome salaries and perks. It is true that ISB has been imparting training in advanced management to enable the trainees to secure jobs. But it is to be understood that these courses are purely academic and educational. These are based on bookish literature, intellectual lectures from persons of repute related to advanced management and have no relevance to any non academic skills. Vocational training, as understood in general parlance, relates to the imparting of special skills related to activities which are generally non-academic in nature. For example, embroidery, tailoring, carpentry, artisan work, electrification, weaving, plumbing, etc., which involve development of skills in field which are generally not academic in nature. The contention made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mme (EEP); and Research Programmes Fellow Programme in Management (Equivalent of Ph.D.) f) These programmes were all taught by eminent academic experts. They also have set up Centres of Excellence with the areas related to business. g) Indian Institute of Management in Ahmedabad and Bangalore also offer similar diplomas and programmes and have also obtained accreditation internationally similar to the ones from whom they have obtained the accreditation. h) They also render the services of management consultant for which they have obtained service tax registration. Thereafter they also voluntarily got themselves registered with the service tax department under the category of commercial training or coaching services . However, they later intimated the department that no service tax is payable by them on the PGP, EEP, PGPMAX courses but have been paying service tax under protest. The department investigated the matter and after more than a year issued another summons and issued show cause notice on 27.09.2006 followed by periodical show cause notices. 9. This was followed by adjudication and subsequent legal proceedings culminating in the impugned denovo adjudicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessary in the public interest so to do, hereby exempts the taxable services provided in relation to commercial training or coaching, by, a. vocational training institute; b. computer training institute; or c. recreational training institute; to any person, from the whole of the service tax leviable thereon under sub-section (2) of section 66 of the said Act. Explanation.- For the purposes of this notification,- i. vocational training institute means a commercial training or coaching centre which provides vocational coaching or training that impart skills to enable the trainee to seek employment or undertake self-employment, directly after such training or coaching; ii. computer training institute means a commercial training or coaching centre which provides coaching or training relating to computer software or hardware; iii. recreational training institute means a commercial training or coaching centre which provides coaching or training relating to recreational activities such as dance, singing, martial arts, hobbies. 2. This notification shall come into force on the 1st day of July, 2003 and shall remain in force upto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts that the appeal deserves to be dismissed. 13. We have considered the arguments on both sides and perused the records. The first issue to be decided is whether the appellant can be considered as commercial training and coaching institute within the meaning of Sec.65(105)(zzc) as retrospectively amended effective from 01.07.2003. This matter had gone up to the Hon ble Supreme Court and on remand CESTAT-Bangalore vide Final Order No.514-520/2012 dated 31.07.2012 held that three co-appellants in the case viz., ISB (appellant herein), the Institute of Chartered Financial Analysts of India and Badruka Institute of Foreign Trade were commercial training and coaching institutes. The matter was remanded back to the Commissioners only with respect to examining the availability of the benefit of notifications 9/2003-ST 24/2004-ST. This order of CESTAT-Bangalore has been challenged by the appellant herein in Civil Appeal No.8787/2012 and is pending before the Hon ble Supreme Court. In view of the factual situation, we do not find it necessary for us to pass any order on this aspect or deviate from the view already taken by the CESTAT an appeal against which is before the Hon ble Apex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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