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TMI Blog2024 (7) TMI 1457X X X X Extracts X X X X X X X X Extracts X X X X ..... t motive as it was clarified by the Department s Circular No. 86/4/2006 dated 01.11.2006. However, the Finance Act, 2011 has taken away the said exemption by incorporating clause 27 to Section 65 to cover all training centres giving training/coaching for a consideration irrespective of the profit motive of the centre were made liable to tax - there was a service tax liability upon the fee received for rendering education services w.e.f. 01.07.2003 itself, however, only till 01.07.2012 when came into existence the Finance Act, 2012. For the impugned period irrespective the tax liability was introduced retrospectively, the said liability remained exempted w.e.f. 01.07.2012, the situation stands corroborated for the year 2016. Resultantly, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , guest houses, clubs etc., manpower recruitment/supply agencies service, management or business consultant services, commercial training or coaching services, convention services, renting of immovable property services etc. The department conducted the audit of the appellant s records for the period 2014-15 to June 2017, it was observed that the appellants are providing various long duration courses including post graduate courses against recovery fees from the participants. (ii) The Department formed an opinion that the activity amounts to be an activity of Commercial Training or Coaching Centre Service which is leviable to tax w.e.f. 01.07.2003 vide Notification No. 07/2003-ST dated 20.06.2003. Till 01.04.2010, the institute which issues ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any educational qualification recognized by the law for the time being in force and thus be within the ambit of service tax. However Deemed to be University have been exempt from this requirement. Therefore, the activity of providing training and coaching by IIM Indore was opined to be a taxable service for want of AICTE approval with IIM Indore. (v) Accordingly, vide the show cause notice as mentioned above, an amount of Rs. 4,20,14,089/- was proposed to be recovered from the appellant alongwith proportionate interest and appropriate penalties. The said proposal has been confirmed vide the aforementioned Order-in-Original. Being aggrieved, the appellant is before this Tribunal. 3. We have heard Shri Tarun Govil for the appellant and Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions and perusing the entire case records, we observe and hold as follows:- (i) The only observation to deny the exemption to the appellants is that the appellants are providing long duration courses which are not approved by AICTE. We have perused the order of Ahmedabad Bench as relied upon by the appellant and observe that it is the same issue which has been decided by the said bench as is covered in the present appeal. It has been held by the bench as follows:- 4.4 In summary as per legal provisions: (a) prior to 01.05.2011 all trainings given for a consideration by any person covered under the definition of 'commercial training or coaching center' would be liable to service tax. Clause 27 of Section 65 of the Finance Act which d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said exemption by incorporating clause 27 to Section 65 to cover all training centres giving training/coaching for a consideration irrespective of the profit motive of the centre were made liable to tax. This amendment was given a retrospective effect from 01.07.2003, one year later to Finance Act, 2011 came the new concept of negative list under Section 66D of the Finance Act, 2012. According to clause (l) thereof services by way of education as a part of curriculum for obtaining a qualification recognized by law for the time being enforce was exempted. Hence, there was a service tax liability upon the fee received for rendering education services w.e.f. 01.07.2003 itself, however, only till 01.07.2012 when came into existence the Fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax. The language is very clear. Prior to 01.05.2011, institutes providing training leading to qualification 'recognized by law were outside the purview of tax. After 01.05.2011 'coaching and training' leading to qualifications 'recognized by law' are exempted (upto 01.07.2012) and in the same fall under negative list thereafter. Thus the SCN is not sustainable as there is no allegation that the coaching or training provided by the appellant is not recognize by law. Non recognition by AICTE is not the same as non recognition by law. Meaning of recognized by law has also been very discussed in the said decision. Following the same, we hold that the show cause notice has wrongly been issued and that the appellant has no tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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