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2011 (7) TMI 506 - AT - Service TaxDemand - As regards the amount received for franchisee services - Franchisee services rendered by the appellants, they are liable to pay service tax and they are also not disputing their tax liability - As such, we confirm the demand of ₹ 19,78,820/- relating to the franchisee services and order that the amount already paid be adjusted against the demand confirmed by us - As regards the penalty, considering the fact that only ₹ 3.5 lakhs was paid after a delay, we reduce the penalty imposed on the appellants to ₹ 3.5 lakhs under Section 78 of the Finance Act, 1994, setting aside the balance amount. As regards Abacus training imparted to the students - Assessee submitted that such training has been held to be recreational training by the Bangalore Bench of the Tribunal in Fast Arithmetic Vs. Asst. Commr. of C.Ex & S.T.[2009 (5) TMI 70 - CESTAT, Bangalore]- As per this decision, no service tax is payable for imparting Abacus training since recreational training is covered under the Notification No. 9/2003-ST dated 20.06.2003 and Notification No. 24/2004-ST dated 10.09.2004. As regards the Abacus training imparted to the teachers - find that such training enables such teachers to either get employment in a franchisee imparting similar training or to open their own training centres and thereby get self-employed - Either way, the training received by them prepares them to get employment/self-employment and such training, therefore, would come under vocational training - Since vocational training comes under the exempted category of services, the demand confirmed in respect of Abacus training to teachers is also set aside along with the penalty imposed in respect of the same.
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