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2019 (2) TMI 1495

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..... y from 18.4.2006 – after enactment of Section 66A. Prior to that there was no provision for charging service tax on reverse charge, thus in absence of any machinery provision to charge service tax though leviable could not have been collected from the appellants. The service tax on Consulting Engineering services received from abroad on reverse charge basis is leviable from 18.4.2006 onwards after allowing the deductions as held by the Apex Court in the case of Intercontinental Consultants and Technocrats Pvt. Ltd. Accordingly, for redetermination of the service tax payable on this account the matter needs to be remanded back to the adjudicating authority. Appeal allowed by way of remand. - ST/348/2009-DB - Final Order No. 20199/2019 - Dated:- 25-2-2019 - SHRI S.S GARG, JUDICIAL MEMBER And SHRI SANJIV SRIVASTAVA, TECHNICAL MEMBER Mr. Kuriyan Thomas, Advocate For the Appellant Dr. J. Harish, Jt. Commissioner (AR) For the Respondent ORDER Per: SANJIV SRIVASTAVA This appeal is directed against Order-in-Original No.8/2009 dated 22.1.2009 passed by the Commissioner of Central Excise, Cochin. By the said order, the Commissioner has held as follows: .....

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..... t of Service Tax and Education Cess. However, I give them an option to avail benefit under proviso 91) and (2) of Section 78 of the Finance Act, 1994. Aggrieved by the order, the appellants have filed this appeal before the Tribunal. 2. We have heard Shri Kuriyan Thomas, Advocate for the appellant and Dr. J. Harish, Authorized Representative (AR). 3.1 We have considered the submissions made both the parties. There are two issues involved in the matter. (i) Commercial Training or Coaching conducted by the appellant. (ii) Charging of service tax for the services viz., Consulting Engineering Service received from abroad on reverse charge basis 3.2 Appellants have challenged the order stating that for a service to be taxable under category of Commercial Training or Coaching Service, it has to satisfy the definition of the said service as per Section 65(27) of the Finance Act, 1994. In terms of the said Section, any training or coaching leading to a certificate recognized by law falls under the category of excluded services. 3.3 As per the Merchant Shipping Act, 1958, Section 7, Director General of Shipping is the appropriate authority competent to fix the .....

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..... law and approval by the Government. The mere approval to run a course does not empower the assessee to issue a certificate recognized by law. As such I find that the assessee will not fall under third exclusion category. Therefore, the institute of the assessee falls under commercial training or coaching centre defined under Section 65(27) of the Finance Act, 1994. 3.6 We refer to the certificate issued by the institute on completion of the course. 3.7 From perusal of the said certificate, it is quite evident that this certificate is issued and also put into the database (INDos No.) maintained by the Director General Shipping. As per DGS Order No.2 of 2007, Requests and Procedures to obtain approval from Director General of Shipping for conduct of Pre Sea Courses and Training for service in Merchant Navy, Clause 4.18 it is provided. 4.18 Entry of Final Certificates in INDoS: The details of the four basic certificates PSSR, PST, EFA and FPFF and the final passing out certificate issued to each candidate, after the course is over, shall be communicated by the Institute to the Officer in-Charge, INDoS Cell in a prescribed format, for entry of .....

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..... worthiness. Though qua the fee etc. to be charged by such institutes there does not seem to be any restriction but the powers under the Act and the Rules in exercise of which such CAR has been issued are wide enough to also issue a direction with respect to the fee etc. to be charged by such institute. 22. The question which falls for consideration is whether the aforesaid would amount to recognition by law of the Course Completion Certificate and On Job Training Certificate given by such institute. 23. The expression recognized by law is a very wide one. The legislature has not used the expression conferred by law or conferred by statute . Thus even if the certificate/degree/diploma/qualification is not the product of a statute but has approval of some kind in law , would be exempt. 24. Recognize is defined, in the Black s Law Dictionary, 8th Edition as confirmation of an act done by another person as authorized, formally acknowledging the existence; and, in Concise Oxford Dictionary as acknowledging the existence, validity or legality of. 25. We are of the view that the Act, the Rules and the CAR, having provided for grant of approval to such ins .....

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..... and for which purpose a further examination to be conducted by the DGCA is to be taken, in our view mixes up and confuses, qualification with a license to practice on the basis of that qualification . An educational qualification recognized by law will not cease to be recognized by law merely because for practicing in the field to which the qualification relates, a further examination held by a body regulating that field of practice is to be taken. Immediate instance can be given of the qualification in the field of law. Though by amendment of the recent years, the right to practice law on the basis of the said qualification has been made subject to clearing/passing a Bar Exam to be held by the Bar Council of India, the same does not make the qualification of law not recognized by law. The recognition accorded by the Act, Rules and CAR supra to the Course Completion Certificate issued by the Institutes as the petitioner cannot be withered away or ignored merely because the same does not automatically allow the holder of such qualification to certify the repair, maintenance or airworthiness of an aircraft and for which authorization a further examination to be conducted by the DG .....

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