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TMI Blog2008 (12) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... vice Tax (Appeals-II) Hyderabad. 2. Shri G. P. Sastry the learned Advocate appeared on behalf of the appellants and Shri VPC Rao, SDR, represented the revenue. 3. We heard both sides. 4. The appellants are providing training in various fields in the name of different institutes i.e., (1) M/s. Pasha Institute of Insurance & Management Training providing training to Insurance Agents sponsored by various insurance companies (2) M/s. Pasha Institute of Health care providing training for nursing Exam Training, IELTS training, Spoken English (3) M/s. Pasha Institute of Media studies providing training T.V., Journalism (4) M/s. Pasha Institute of Performing Arts conducting computer classes, music classes and collecting fees for all the courses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A Act, 1999 to conduct classes for the students who appear for IRDA examination which is requisite for working as an Insurance Agent in Insurance Company. In fact, the course is nothing but a vocational course. (iii) The training imparted by it is covered under Notification No. 24/2004, dated 10-9-2004 which exempts vocational training from the levy of service tax under the category of "Commercial Training or Coaching Centre". (iv) Just because the appellant collects nominal fee from the students/insurance companies for imparting training to the prospective insurance agents, it does not become a commercial entity. (v) Even if there is a surplus in the organization, the said funds can be utilized only for the objects for which the fund is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case carefully. Both the lower authorities have held that the services rendered by the appellants could be categorized as "Commercial Training or Coaching'. However, they have also given a finding that the said coaching or training rendered by the appellant cannot be called as vocational training and therefore the benefit of exemption Notification 9/2003, dated 20-6-2003 as amended cannot be extended to the said training imparted by the appellant. There is also a finding by the Original Authority that the appellant would not be entitled for exemption under Notification No. 10/2003, dated 20-6-2003 which provides exemption for institute giving the course which leads to the award of certificate or diploma or degree recognized by law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that the appellant is not entitled for the exemption which is available only to those institutes, which offer coaching or training which forms part of the course or curriculum of any other institute leading to issuance of any certificate recognized by law. He has also justified the invocation of the extended period on the ground that the appellants never approached the authorities for exemption and the issue came into the light only when the department started investigation. 9. The appellant is providing training to candidates sponsored by various Insurance companies. We have gone through the syllabus of the training given by the appellant. The broad topics covered are :- (a) Introduction to insurance (b) Fundamental of Agency Law (c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted by IRDA to qualify to work as Insurance Agent under the insurance Act, 1938. We should not forget that the comprehensive training given by the appellant enables the trainees to appear for the examination conducted by IRDA. Moreover, the appellant institute is also recognized for imparting training by the IRDA. In these circumstances, we cannot say that the training imparted is not a vocational training. We are of the view that the training imparted should be considered to be a vocational training. Once, it is held that the appellant imparts vocational training, then they would be entitled for the benefit of exemption Notification 9/2003 ST as amended. We also do not find any justification for invocation, of the longer period. In these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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