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2013 (8) TMI 712 - AT - Service TaxNature of Service - Commercial Training or Coaching u/s 65 (105) (zzc) - non-profit institution - training programmes at the level of individual bank - The department was of the view that the service rendered by the assesse came under the category of ‘Commercial Training or Coaching' - Held that:- The activity undertaken by the assesse falls within the definition of ‘commercial coaching or training' as defined in Section 65(105)(zzc) - The services rendered by the assesse was exigible to service tax under ‘commercial coaching or training service - The assesses were providing to their students "training or coaching" for a consideration and would ipso facto fall within the ambit of "commercial training or coaching centre" envisaged in the explanation to Section 65(105)(zzc) - As this explanation had retrospective effect from 01/07/2003, the activities undertaken by all the assesses during the periods of dispute would get covered within the meaning of the phrase "training or coaching imparted for consideration" occurring in the text of the explanation - the explanation to Section 65(105)(zzc) of the Act had very wide scope to encompass the activities of the assesses and render them exigible to service tax under Section 65(105)(zzc) of the Act. U.P.Gram Panchayat Adhikari Sangh & others v. Dayal Ram Saroj & others [2006 (12) TMI 446 - SUPREME COURT] - It was an inbuilt mechanism in the system itself - Judicial discipline demands that when the decision of a co-ordinate Bench of the same High Court was brought to the notice of the Bench, it was respected and is binding, subject of course to the right to take a different view or to doubt the correctness of the decision and the permissible course then often was to refer the question or the case to a larger Bench - This was the minimum discipline and decorum to be maintained by judicial fraternity. Time-barred Demand - Whether the demand was hit by time-bar – Held that:- Service tax demand shall be restricted to the normal period of limitation inasmuch as the assesse was under the bonafide belief that they are not liable to service tax and evidences on record also support this fact - There cannot be any suppression of facts on the parts of the assesse and, therefore, the service tax demand had to be restricted to the normal period of limitation - the notice had been issued on 06/04/2009, only the demand for the period October, 2007 to September, 2008 would fall within the normal period of limitation and the demand of service tax had to be restricted to this period only. Eligibility for Abatement - Held that:- The assesse was eligible for abatement towards the amounts levied for boarding and lodging expenses charged from the trainees subject to submissions of satisfactory evidences in this regard - on such evidences being furnished the service tax demand shall be re-computed and the assesse shall be liable to pay such recomputed service tax along interest.
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