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TMI Blog2008 (8) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... ted:- 23-8-2008 - Dr. S.L. Peeran, Member (Judicial) and Shri T.K. Jayaraman, Member (Technical) (Final Order Nos. 1125-1126/2008 dt. 23.8.2008 certified on 14.10.2008 in Appeal Nos. ST/305 404/2007) Shri G. Shivadass, Adv. for Party. Shri K. Sambi Reddy, JDR for Department. [Order per T.K. Jayaraman Member (Technical)] - Both party and revenue have filed these appeals against the following impugned orders. Appeal No. OIO/OIA Duty + Education Cess Period Penalty Remarks ST/305/2007 OIO No. 2/ 2007 dt.28.3.2007 Rs.70,72,521/- Sep.'03 - July'05 U/S 76,77 78 of the Finance Act. Appeal filed by the party ST/404/2007 O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the name of M/s. Magnus School of Business (MSB) located in various cities across the country namely Hyderabad, Vizag, Chennai, Bangalore, Mysore, Cochin, Pune, Bhubaneswar for the benefit of the students who aspire for quality education. The following educational qualifications were awarded to the students completing course at MSBs. (i) Post Graduate Diploma in Management (PGDM) (ii) Post Graduate Diploma in Business Administration (PGDBA) 4.2 The appellants also entered into arrangements with various Universities. Under these arrangements, the students studying at the MSBs are allowed to enroll with the Universities. Such an enrollment would entitle the students to obtain a degree awarded by the concerned Universities subject to f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the MoU with University of Mysore may be summarized as follows. (i) The University of Mysore has provided accieditation to the appellants. (ii) The appellant launches the programmes, advertises and enrolls the students using its own resources. (iii) The appellants conduct educational programmes to the syllabus prescribed by the University of Mysore. (iv) The appellant is allowed to conduct value added modules. (v) The minimum qualification and eligibility for admission of students to each of the courses shall be as per the regulations approved by the University of Mysore. (vi) The examinations will be conducted by the University of Mysore. After the completion of the examination process, the University of Mysore issues ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nseling sessions, teaching, practical project work, etc. The balance fee is to be passed on by MSB to the respective University. 5. Revenue proceeded against the appellants on the ground that they rendered services falling under the category of "Commercial Training or Coaching" services. Show Cause Notice dated 16.11.2005 was issued to LMU proposing to demand Service Tax of Rs.69,80,491/- for the period from September 2003 to July 2005 invoking extended period of limitation and proposing interest and penalties under Section 76,77 78 of the Finance Act. The Adjudicating Authority confirmed the demands and imposed penalties on the appellants. The appellants are aggrieved over the impugned order of the Commissioner and have come before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Societies of Registration Act. The Income tax Authorities have also issued certificates for exemption from Income Tax. All these prove that profit motive is not there in these institutions. The decision of the Hon'ble Tribunal of Chennai Bench in the case of M/s. Great Lakes Institute of Management Ltd. v. CST, Chennai - 2008 (86) RLT 420 (CESTAT-Che.)=2008-TIOL-134-CESTAT-MAD. would be squarely applicable. So long as the institutions impart education, the same cannot be considered as "Commercial Training or Coaching". Education has a larger scope. Education may include coaching or training and not vice versa. Coaching or training is a very narrow activity imparting skill in a particular discipline. But, education is a broade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007 - CC, CE ST, Hyderabad Vs. M/s. Magnus School of Business 10. As far as the Appeal No.ST/404/2007 is concerned, it is filed by the revenue against the impugned Order-in-Appeal No33/2007 (H-II) S. Tax dated 31.7.2007 passed by the Commissioner of Central Excise (Appeals), wherein he has dropped the proceedings. Revenue is against M/s. Magnus School of Business for the relevant period. The Commissioner (A) has given elaborate reasons for dropping the proceedings. The revenue is aggrieved over the impugned order of the Commissioner (A). The revenue's arguments are that the respondents indeed provide commercial coaching or training taking hefty fees. They would not be covered by the exclusion clause and the fact that they get ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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