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TMI Blog2019 (11) TMI 1058X X X X Extracts X X X X X X X X Extracts X X X X ..... MITTEE (SCEC) [ 2015 (6) TMI 627 - CESTAT BANGALORE (LB)] , the appellants are liable to pay service tax on the service provided by them as the appellants are not falling under any category excluded from the definition of Commercial Coaching and Training. The demand of duty, interest and penalty under Section 77 and 78 are upheld - appeal dismissed. - Service Tax Appeal No. 681 of 2011 - FINAL ORDER NO. A/12227/2019 - Dated:- 21-11-2019 - HON'BLE PRESIDENT JUCTICE DILIP GUPTA AND HON'BLE MEMBER (TECHNICAL), MR. RAJU None appeared for the Appellant Shri K. J. Kinariwala, Authorised representative for the Respondent ORDER This appeal has been field by IILM against order demand of service tax, interest and imposition of penalty under Section 77 and 78 of the Finance Act, 1994. 1.1 None appeared on behalf of the appellant despite notice. The matter was adjourned five times earlier; therefore, the matter is taken up for final disposal. 2 The facts of the case are that the appellants are engaged in imparting courses such as MBA, PGP programme (industry integrated). A Show cause notice was issued to the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... native relies on the decision of Hon ble High Court, State of Telangana in case of NRI Academy Guntur 2019 20 GSTL 23 (AP). 4. We have considered rival submissions. We find that the appellants themselves are not recognized by law to grant any degree and therefore, the service provided by the appellant qualifies as Commercial Coaching and Training. Notification 10/2003 reads as under:- Commercial training or coaching centre providing commercial training or coaching of specified type exempted In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services provided by a commercial training or coaching centre, in relation to commercial training or coaching, which form an essential part of a course or curriculum of any other institute or establishment, leading to issuance of any certificate or diploma or degree or educational qualification recognised by law for the time being in force, to any person, from the whole of the service tax leviable thereon under sub-section (2) of section 66 of the said Act : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cognized by law, would be excluded from the levy of Service Tax. In the present case, the Appellant Society provides the coaching classes to the students, which is integral part of the intermediate course conducted by the college and the certificates issued by BIE (Board of Intermediate Education), Government of Andhra Pradesh and duly signed and endorsed by the Principal of the respective college, are recognized by law. So, it is not covered under the definition. 79 . For the purpose of proper appreciation of the case, the definition of Commercial Training or Coaching Centre under Section 65(27) of Finance Act, 1994 is reproduced below :- Commercial training or coaching centre means any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or filed other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes but does not include pre-school coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognized by law for the time being in force. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blishment which issues certificate or diploma or degree or any educational qualification recognized by law , ordinarily, would not include coaching or tutorial classes. After close reading of Board Circular and the definition, it appears that the institute or establishment issuing certificate, recognized by the law, is also conducting coaching classes, would be outside of the purview of the levy of Service Tax. The learned Advocate stated that in the present case, the coaching classes are integrally connected with the intermediate courses conducted by the colleges. The contention of the learned Advocate that the certificate issued by Andhra Pradesh Board is endorsed by the Principal of the college, which would cover the exclusion part of the definition. In this context, it is required to examine the facts of the case as to whether the coaching classes offered by the Appellant Society are integrally connected with the intermediate courses. 82 . The learned Member (Technical) in his order had elaborately discussed the facts and held that the courses have no nexus with intermediate courses of the colleges. The adjudicating authority had also given detailed findings on this i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... students on the basis of merit but not on the basis of economic conditions of the students. 83 . The students appear for the intermediate examinations under the hall ticket issued by the respective colleges and the students after passing examination, are awarded a certificate which issued by Intermediate Board Education duly endorsing stamp of respective college. However, the students of said colleges underwent coaching in different campus of the appellant on payment of fee ranging from ₹ 8,000.00 to ₹ 75,000.00 which was accepted by Shri K.V. Subba Rao, Accounts Manager of the appellant in his statement dated 28-2-2006. He also confirmed that the amount was collected from the different students of different colleges who underwent coaching of JE-IIT, EAMCET, etc., in different branches of the Appellant Society situated in Andhra Pradesh and other places of India. It is clearly evident from the facts of the case that the coaching classes were conducted in different campuses, separate fees and totally independent and had no nexus with the intermediate courses of the colleges. So, I agree with the finding of the learned Member (Technical) that Service Tax is le ..... X X X X Extracts X X X X X X X X Extracts X X X X
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