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2018 (6) TMI 806 - AT - Service TaxClassification of services - Appellant is engaged in conducting various courses some of which are approved by the AICTE or by “Education Institute of American Hotel and Lodging Institute” (EL – AHLA) or by International Air Transportation Institute (IATA) - whether the services would be taxable under the head commercial coaching and training services or otherwise? - Held that:- During the relevant period not only the degree/ diploma courses recognized by the University were exempted from Service Tax, but even the Vocational courses were also exempted in terms of N/N. 9/2003 – ST dt. 20.06.2003. In case of courses run by Appellant in MOU with the EI-AHLA, the Appellant has provided the list of students who on completion of course were employed with the Hotels and Hospitality Industry. If a course enables the student to acquire the knowledge and skills which enables them to seek employment or undertake self employment directly after such training or coaching, the said course will be covered by the vocational training and eligible for the exemption. The Appellant institute is providing both theoretical as well as practical training in the filed of hotel, tourism, airlines, travel agencies and tour operators. In case of courses run under the authorization of IATA, we find that the said courses also are job oriented in nature. The GDS FARE and Ticketing is run under the affiliation of IATA which is body with Global recognized operations and such affiliation makes the students acquire skills and training to acquire employment. There is no doubt that the courses run by the Appellant institute are thus providing vocational knowledge and training and cannot be made liable for service tax during the impugned period. There is no hesitation to hold that the courses run by the Appellant institute clearly fall under the vocational training and are eligible for exemption from service tax in terms of N/N. 9/2003-S.T., dated 20-6- 2003 and 24/2004-S.T., dated 10-9-2004 - the demand and penalty against the Appellant are not sustainable - appeal allowed - decided in favor of appellant.
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