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2014 (10) TMI 64 - AT - Service TaxCommercial training or coaching services - Classification of service - 5 institutes conducted courses such as Post Graduate Diploma in the field of Information Technology, Marketing, Personnel Management, Human Resources Development, etc. which were not recognized by law. - Held that:- it can be easily seen that the services rendered by the appellant through its 5 institutes shall fall clearly within the scope of ‘commercial training or coaching' service as defined in law. In view of the retrospective amendment made in the law by way of explanation to Section 65(105)(zzc), even if the appellant is a charitable trust or society, the appellant would be liable to pay service tax. AICTE approvals for conducting the various courses in Information Technology and Management to Balaji Institute of Modern Management (BIMM), Balaji Institute of Telecom & Management (BITM), Balaji Institute of Management & Human Resource Development (BIMHRD) were given for the academic years 2008-09 onwards in May and October, 2008. In other words, during the period of demand, neither the courses were recognized by law nor the institutes/establishments conducting the courses were approved. Therefore, these institutes clearly fall under the definition of ‘commercial training or coaching centre' as defined in law and the services rendered by them are liable to service tax and we hold accordingly. Appellant had discharged bulk of the service tax demand confirmed (that is ₹ 5.27 Crore (approx.) out of about ₹ 6.59 crore) before the issue of show cause notice. In these circumstances imposition of equivalent amount of penalty under section 78 of the Finance Act, 1994 is not warranted. Accordingly we set aside the penalty imposed under Section 78 on the appellant - Decided partly in favour of assessee.
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