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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 ..... uty + 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 Order-in -Appeal No. 33/2007(H-II) dated 31.7.2007 Rs. 39,05,987/- July'05 -Dec.'05 -do- Appeal filed by Revenue 2. Shri G. Shivadass, learned advocate appeared on behalf of the party and Shri K. Sambi Reddi, learned JDR for the revenue. 3. We heard both sides. 4. The Order-in-Original No.2/2007 dated 28.3.2007 has been passed by the Commissioner of Customs and Central Excise, Basheerbagh, Hyderabad. There is a duty demand on M/s Magnus Society, Hyderabad for the relevant period. 4.1 The learned advocate st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 fulfillment of other conditions. Thus, the students studying at the MSB will be awarded PGDM or PGDBA by the appellants. 4.3 The Supreme Court in a Writ Petition held ultra vires the legislation passed by the State of Chhattisgarh in respect of the Le Magnus University, Raipur. Consequent to this, Le Magnus University, Raipur ceased to exist. In the light of the directions given by Supreme Court in Para 45 of the judgment, the Magnus Society, Raipur being the sponsor society decided to take over the courses offered at the MSBs as a transitional measur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 mark statements/degree certificates to the successful students, which also bear the name of the appellants. 4.5 Similarly, MoU was entered into with TMVP. The salient features of MoU between appellants and TMVP are as follows: (i) The specified educational programmes, like MBA, are to be conducted by MSB as per the syllabus and regulations of TMVP. (ii) The eligibility for admission of candidates to the courses will be as fixed by TMVP. (iii) TMVP has the right to fix the number of students to be admitted in each programme. (iv) MSB shall be responsible for ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority confirmed the demands and imposed penalties on the appellants. The appellants are aggrieved over the impugned order of the Commissioner and have come before this Tribunal for relief. 6. Inviting our attention to the definition of "Commercial Training or Coaching" and also "Commercial Training or Coaching Centre", it was strongly argued that the services rendered would not amount to commercial training or coaching but the services are actually in the nature of imparting education. Moreover, on completion of the course the students are taking examination and getting degrees which are recognized by law. They have produced elaborate evidences to support their case. It was also stated that the society is a non-profit organization register ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g or training and not vice versa. Coaching or training is a very narrow activity imparting skill in a particular discipline. But, education is a broader term which is a process of development of personality of body, mind and intellect. In these circumstances, it would be very difficult to establish or to hold that the appellants imparted commercial coaching or training. 9. Our attention was also invited to the decision of various authorities on the same issue. The Order-in-Appeal No.18/2007 (H-II) S. Tax dated 31.5.2007 in the case of M/s. Badruka Institute of Foreign Trade and also the Order-in-Appeal No.33/2007 (H-II) S. Tax dated 31.7.2007 in the case of Magnus School of Business, Hyderabad wherein it has been held in the light of the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommercial coaching or training taking hefty fees. They would not be covered by the exclusion clause and the fact that they get exemption from income tax is not relevant. These are all the points advanced by the revenue. 11. We have already given our view in the party's appeal above. In view of that we need not again elaborate our views in this revenue's appeal, hence, we do not find any merit in revenue's appeal and therefore, we reject the same and uphold the order of the Commissioner (A). 12. Summing up: We are of the view that while deciding whether an institution imparts commercial training or coaching, the totality of the circumstances has to be gone into it. Just because an institution collects fees from the students, one cannot com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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