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2017 (10) TMI 710 - AT - Service TaxClassification of services - Commercial Coaching or Training services - scope of term commercial - whether Educational Institution other than colleges/institutes not recognised under the law would otherwise be within the ambit of the taxable service of Commercial Training or Coaching Service? - Section 65 (27) of the Finance Act, 1994. Held that: - the commercial training or coaching for imparting skill or knowledge or lessons on any subject or field are covered under commercial training or coaching centre. The exclusion is provided from the ambit of this service with regard to sports activity and preschool coaching and training centre or any institute or establishment which issued any certificate, diploma, degree of any educational qualification recognized by law for the time being in force. As per the facts of the present cases, the service of both the appellants are squarely covered in the first limb of definition. Since imparting of skill knowledge or lessons is not on the sports and the education is not related to preschool coaching and training also the establishment does not issue certificate, diploma, degree or any educational qualification which was recognized by law, the training or coaching provided by the appellants do not fall under the exclusion category of the definition therefore squarely covered under the definition of commercial training or coaching centre. Identical issue decided in the case of M/s GREAT LAKES INSTITUTE OF MANAGEMENT LTD & OTHS Versus CST, CHENNAI & OTHS [2013 (10) TMI 433 - CESTAT NEW DELHI - LB], where it was held that except training or coaching falling in the exclusion category of all training or coaching falls under the definition of commercial training or coaching service, hence the same is taxable - the demand confirmed by the lower authority on merit is sustained. Extended period of limitation - Held that: - the appellants have suppressed the fact as well as contravened the provisions of this Chapter of the Act or of the Rules made under with intent to evade payment of service tax therefore the extended period was rightly invoked. Quantification of demand - various deductions such as certain amount was not received during the impugned period, certain fees, such as postal s, mess/sale of goods etc. - includibility - Held that: - once the appellant made a claim in their defence for deduction of taxable value. It is incumbent on the Commissioner to consider it, non-consideration of the same is violation of the principles of natural justice - the submission of the appellant challenging the quantification should have been properly dealt with by the adjudicating authority. CENVAT credit - input service - Held that: - matter remanded as regard quantification of demand in the case of MIT Institute of Design to the adjudicating authority for re-quantification on verification of all the documents/information/to be produced by the appellant - matter on remand. Penalty u/s 76,77 & 78 - Held that: - the appellants have neither taken the registration nor filed the ST-3 return. It is also observed from the finding in Para 23 of the order-in-original as reproduced above, the appellants have contravened the provisions of Chapter of Finance Act, 1994 and Rules made there under with intent to evade payment of service tax. They could not make out a case of reasonable cause was not discharging the service tax - penalty rightly imposed. Part matter on remand and partly decided against appellant.
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