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2015 (6) TMI 694 - AT - Service TaxCommercial Training and Coaching service - vocational training - valuation - exemption under Notification 24/04-ST - levy of penalty - Held that:- From the course content, it is clear that courses are academic in nature and covers broad spectrum of subjects as diverse as Micro Economic, Business Communication, Psychology & Organizational Behaviour, Commercial Laws, Computer based Data-Analysis, Corporate Finance, Negotiation & Contracting. In the second year, courses though gets limited to the field of specialization but are again diverse, theory oriented and academic in nature. The content of courses can by no stretch of imagination can be called vocational. No doubt the two years course will help candidates in understanding various facets of management and get employment. It is a professional management course. This cannot be considered as Vocational Course that imparts skill to enable the trainee to seek employment or self employment after the said course. Decision in the case of Ashu Export Promoters P. Ltd. [2011 (11) TMI 387 - CESTAT, NEW DELHI] distinguished. However in the case of the second appellant, we agree with the Ld Counsel that the genuine belief that Charitable Trusts are not covered by the expression "Commercial Training or Coaching Centre" is supported by the fact that Not 24/2004 was amended retrospectively to cover such institutions. Therefore the larger period of limitation cannot be invoked as held by the Tribunal in the case of I2IT P. vs. CCE - [2014 (9) TMI 345 - CESTAT MUMBAI]. Valuation - Held that:- Amount recovered under students fund is recovered under receipts and is towards expenses such as textbooks, uniform, medical check-up, insurance etc. Unspent amounts are returned to the students. The ld. counsel also showed from the appeal papers the details of the amounts returned to the students. We agree with the reliance placed on the case of Intercontinental Consultant & Technocrafts P. Ltd. [2012 (12) TMI 150 - DELHI HIGH COURT] in which the Delhi High Court held that amounts recovered towards expenses cannot form part of the value of the service. Similar is the case relating to charges for re-examination fees which is an activity post the coaching training and is an expense recovered from the students. Accordingly, we hold that these charges are not includable in the value of the service. In view of the uncertainty prevailing on the leviability of tax on "Commercial Training and Coaching centres and keeping in view the amendments to the Notification 24/2004 which introduced changes in the definition of vocational training, a fair case is made out before us to hold that there was a reasonable cause for failure to deposit the service tax. And therefore, the benefit of section 80 which uses the word "reasonable cause" must be extended to the appellants. - demand of service tax and interest on all the appellants but set aside the demand for the larger period of limitation; however the penalties are set aside in terms of Section 80. - Appeal disposed of.
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