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2015 (9) TMI 425 - AT - Service TaxVocational training Institute - Running of Commercial Coaching Classes for the students of Chartered Accountant examination and providing coaching for different Chartered Accountant courses - exemption Notification No. 24/2004-ST dated 10.09.2004 - Clubbing of income of other relatives to the taxable turnover of the assessee - appellant strongly relied upon the decision of the Tribunal in the case of Pasha Educational Training Inst. [2008 (12) TMI 80 - CESTAT, BANGALORE] - Held that:- he appellants institute was recognised by IRDA. In such a situation, the Tribunal held that the training imparted should be considered a vocational training. In the present case, the appellant s institute is not recognised for imparting coaching by the Institute of Chartered Accountants India and therefore, the said case law would not applicable in the facts of this case. So, the appellant is not eligible for the benefit of exemption notification as vocational training institute. - Decided against the assessee. Clubbing of turnover - Held that:- There is no material available on record that the Central Excise Officers had made any inquiry of the property shown in the income tax returns and from the Income Tax Department in respect of such Income Tax returns. Hence, we are unable to accept the clubbing of the income of the other relatives of the appellant as fees on the basis of the Income Tax returns. The other aspect of this matter is that while clubbing the income of the relatives with the appellant, no show cause notice was issued to the relatives. The relatives are all independent existence, not disputed by the Department. The Adjudicating authority should not pre-determine the issue, without issuing show cause to the relatives. - Decided in favor of assessee. Determination of taxable turnover - Held that:- It is noticed that the taxable value was determined on the basis of three sources (a) Fees collected (as per computer print out Pages taken out at the time of search) (b) Fees collected (as per details provided by the appellant vide Annexure A , B and C (fees receipt ledger) letter dated 04.05.2012 and (c) Fees collected/ income (by clubbing the income shown in the income tax return of the 13 persons/firm). - The highest amount, among all these three sources in each year had taken on year-wise taxable value for determining demand of tax - service tax cannot be levied in such manner, on the basis of pick and choose method of the documents, which is totally inconsistent, misconceived and irrational. - Decided partly in favor of assessee. Extended period of limitation - Held that:- appellant had not disclosed to the department tax liability and it is a clear case of suppression of facts with intent to evade payment of tax and extended period of limitation and penal provisions under Finance Act, 1994 would be invoked - Decided against the assessee.
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