TMI Blog2014 (3) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... a digitization charges - Held that:- the activity of data digitization for various Government department would not be covered by the definition of support services of business or commerce as the data digitization service for various Government departments cannot be treated as the service in relation to business or commerce. Extended period of limitation - Held that:- it would be absurd to allege that an institution run by the State Government and which is associated in implementation of various welfare schemes of the centre and State Government like Prime Minister Rozgar Youjana (PMRY), Prime Minister Employment Generation Programme (PMEGP), Mass Employment Generation through Science & Technology (MEGSET), Swayam Siddha project for upliftment and development of women in the rural areas, Rani Durgawati Swarozgar Yojana (RDSY), CM Gharelu Kamkaji Mahila Yojana (CMGKMY) etc. by organizing various training programmes to improve the skills of poorer sections of the society, of having evaded service tax by taking recourse to fraud, wilful misstatement, suppression of facts etc. On this point, the approach of the department is absurd and, therefore, neither longer limitation perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercial coaching and training service taxable under Section 65 (105) (zzc) readwith Section 65 (27) and accordingly the grants received from the Government by the appellant institution would have to be treated as the gross amount charged by the appellant institution for this service. The service tax demand of Rs. 4,15,52,918/- is on this basis, the details of which are given in Annexure A to the show cause notice. According to the appellant, the grants received from the Government for various programmes like PMRY, EAC, EDP, RDSY, MDS/DOP etc. has been treated by the Department as the value of the taxable service provided by them and service tax has been charged on the same. 1.2.2 Beside this, according to the department, the appellant institution has provided - (a) Business support service by data digitization for various government departments, and (b) renting of immovable property service by renting certain portion of the premises owned by them and also the service of management or business consultant service and business franchisee service. The remaining service tax demand of Rs. 10,34,026/- in respect of these service. 1.2.3 It is on the above basis that a sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout issuance of certificate and includes coaching or tutorial classes, but does not include pre-school coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognized by law for the time being enforce, that the appellant institution also conducts courses of diploma in computer application (DCA), Bachelor of Computer Application (BCA) and Post Graduate Diploma in Computer Application (PGDCA) in collaboration with Bhoj University of Madhya Pradesh and these degrees are recognized by law, that these courses are organized in collaboration with Bhoj university at a subsidized cost for the benefit of financially weak students who cannot afford to study for such courses in non-Government institution, that since the appellant institution conducts courses which result in award of degree or diploma recognized under the law, they go out of the definition of commercial training or coaching centre , as given in Section 65 (27) and, hence, the entire service tax demand confirmed by treating the appellant institution as commercial training or coaching centre is not sustainable, that in this regard, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned Jt. CDR, opposed the stay application by reiterating the findings of the Commissioner and pleaded that the amount already deposited by the appellant is not sufficient to safeguard the interests of the Revenue. He, therefore, pleaded that this is not the case for waiver from the requirement of pre-deposit. 5. We have considered the submissions from both the sides and perused the records. 6. The bulk of the service tax demand of Rs. 4,15,52,918/- is in respect of the appellants activities in relation to Prime Minister Rozgar Youjana (PMRY), Entrepreneurship Awareness Camps (EACs), Skill Development Programmes (EDPs), Rani Durgawati Swarozgar Yojana (RDSY), Self Help Groups (SHGs), Entrepreneurship Development Programmes (EDPs), Management Development Programmes/Development Orientation Programmes (MDPs/DOPs) which are sought to be subjected to service tax by treating the activities as commercial coaching or training service. However, it is not denied that the appellant institution is also conducting courses in collaboration with Bhoj university which result in award of degrees/diploma, like Diploma in Computer Application (DCA), Bachelor of Computer Application (BCA) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port services in terms of explanation to Section 65 (104C) includes providing office alongwith office utilities, lounge, reception with competent personnel to handle messages, secretarial services, internet and telecom services, pantry and security. The impugned order does not discuss at all as to how the data digitization or any other activities of the appellant are covered by the definition of infrastructure support services. In our prima facie view, the activity of data digitization for various Government department would not be covered by the definition of support services of business or commerce as the data digitization service for various Government departments cannot be treated as the service in relation to business or commerce. 6.1 As regards the services of renting of immovable property and franchisee service, the service tax on the same has admittedly being paid by the appellant. 7. Moreover, we are also of the view that it would be absurd to allege that an institution run by the State Government and which is associated in implementation of various welfare schemes of the centre and State Government like Prime Minister Rozgar Youjana (PMRY), Prime Minister Employmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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