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TMI Blog2023 (11) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... lessons on any subject or field with or without issuance of a certificate and includes coaching or tutorial classes, but does not include 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. The definition, as amended w.e.f. 01.05.2011, deletes only that latter portion not included in the definition of commercial training or coaching centre . The Commissioner has recorded a finding, after careful examination of the activities undertaken by the Indian Institute that it was providing training or coaching for a consideration. There is no error in this finding as indeed the Indian Institute was engaged in imparting education in the field of Post Graduate courses in clinical research for a consideration - The contention of the learned Chartered Accountant for the appellant that since the Indian Institute is a registered society and is working without profit, no taxable service can be said to have been provided cannot also be accepted. Thus, if the Indian Institute itself did not appear before the Commissioner despite ample opportunities having been provided, it cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Finance Act, 1994 [the Finance Act] and made taxable under section 65(105)(zzc) of the Finance Act, with interest and penalty. 2. The Indian Institute claims to be a society registered under the provisions of the Societies Registration Act, 1860. It also claims to be recognized as a charitable organization under section 12AA of the Income Tax Act, 1961 [the Income Tax Act]. 3. The Indian Institute, which during the aforesaid period was engaged imparting education in the field of Postgraduate Courses in clinical research in India, entered into collaboration with Cranfield University, UK [the UK University] under an Agreement dated 02.03.2006, titled as Postgraduate Clinical Research Courses Collaboration Agreement . This Agreement was subsequently amended on 20.10.2008. Under the Agreement, the Indian Institute could conduct Post Graduation courses in clinical research of 2 years but the degrees were to be awarded by the UK University, which claims to be a University recognized under the UK laws. 4. During investigation by the department, it was noticed that that Indian Institute is engaged in providing commercial training or coaching services as it conducts a course ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther, the training was imparted for consideration. The noticee has submitted a brochure which outlines the details of the courses offered by them. The brochure describes the Institute of Clinical Research (India) as the country s premier clinical research Institute dedicated to promoting ethical research and high quality clinical research education. ***** 10. After considering the nature of the activity undertaken by the Indian Institute, and the definition of commercial training or coaching , the Commissioner recorded the following findings: 11. I have elaborately discussed the meaning of the term/phrase recognized by law above. It does not require any further discussion except to say that the law related to educational qualification is governed and controlled by the University Grants Commission Act, 1956 or All India Council of Technical Education Act, 1987 as the case may be. The right of conferring or granting degree, under Section 22(1) of the Act of 1956 supra rests with a University established or incorporated by or under a Central Act, a Provincial Act or a State Act or an institution deemed to be a University under Section 3 of the University Grants Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 80 of the Finance Act. 13. Shri Harshvardhan, learned authorized representative appearing for the department, however, supported the impugned order and placed reliance upon the two Larger Bench decisions of the Tribunal in Great Lakes Institute of Management Ltd. vs. Commissioner of Service Tax, Chennai [ 2013 (32) STR 305 (Tri-Del.) ] and Sri Chaitanya Educational Committee vs. Commr. of Cus., C. Ex. ST, Guntur [ 2019 (29) GSTL 712 (Tri-LB) ] . 14. The submissions advanced by the learned chartered accountant for the appellant and the learned authorized representative appearing for the department have been considered. 15. To appreciate the contentions that have been advanced, it would be appropriate to examine the definition of commercial training or coaching under the section 65(26) of the Finance Act as also the definition of commercial training or coaching center under section 65(27) of the Finance Act so as to determine whether the services provided by the Indian Institute would be taxable under section 65(105)(zzc) of the Finance Act. 16. Section 65(26) of the Act, which was inserted w.e.f. 01.07.2003, defines commercial training or coaching ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commercial training or coaching centre has been defined, prior to 30.04.2011, to mean any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field with or without issuance of a certificate and includes coaching or tutorial classes, but does not include 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. The definition, as amended w.e.f. 01.05.2011, deletes only that latter portion not included in the definition of commercial training or coaching centre . 21. The Indian Institute, as noticed above, is engaged in the field of imparting training in collaboration with the UK University. The degrees are awarded to the students by the UK University. The training that was imparted to the students was for consideration. 22. The contention of the learned Chartered Accountant for the appellant is that the Indian Institute was only imparting education to students in clinical research and was not conducting any commercial or coaching activities. According to the learned Chartered Accountant, the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e providing commercial training or coaching . It is providing a taxable service. All decisions of the Tribunal taking a contrary view stand overruled. 28. The contention of the learned Chartered Accountant for the appellant that since the Indian Institute is a registered society and is working without profit, no taxable service can be said to have been provided cannot also be accepted. 29. The Larger Bench of the Tribunal in Chaitanya Educational repelled this contention and the observations are as follows: 23. To remove all doubts, an explanation was also inserted in Section 65(105)(zzc) by Finance Act, 2010 with retrospective effect from 1 July, 2003. It provides that the expression commercial training or coaching centre would include a centre or institute where training or coaching was imparted for consideration, whether or not such centre or institute was registered as a trust or society with or without profit motive. 24. Thus, it is immaterial whether the appellant is providing the taxable service on non-profit basis . 30. The contention of the learned Chartered Accountant for the appellant that since the order passed by the Commissioner is an ex-parte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his order above, which clearly and unambiguously illuminate that service tax is leviable on the noticee being a commercial training or coaching centre providing commercial training or coaching services . The statutory provisions, as have been enumerated above in this proceeding, clearly unfold the fact that the service tax was leviable on the commercial training or coach service provided by the ICR. In such circumstances, the plea put forth by the ICR that they were under the bona fide belief that no service tax was payable on the services provided by them, does not qualify that criterion of bona fide belief. 35. There is no error in the aforesaid finding recorded by the Commissioner. When the provisions of sections 65(26) and 65(27) of the Finance Act are so clear, the Indian Institute cannot claim to have formed a bonafide belief that it was not liable to pay service tax. 36. The contention of the learned Chartered Accountant for the appellant that penalty under section 77 of the Finance Act should be set aside also does not deserve acceptance. 37. Section 77 of the Finance Act provides penalty for contravention of any provisions for which no penalties are provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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