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2018 (6) TMI 1303 - AT - Service TaxCommercial training or coaching service - Scope of 'Vocational Training' - fees charged from candidates registered for the ‘Masters in Business Administration’ programme - case of appellant is that the liability to tax does not arise as they are not in the business of providing education but are a public institution in which Government of India and its insurance undertakings are owners - Held that:- It is seen that the consideration received from students enrolled for education are, owing to legislative intent, indeed taxable and that, to the extent of specific exclusion in the taxable entry, conformity with the description therein has to be strictly adhered to. That the appellant is a provider of training and coaching service is not disputed. Despite the inclusion of ‘commercial’ in the description of the taxable service, the absence of a profit motive, does not, of itself, alter the tax liability. It suffice that earnings are received for an activity to be commercial. Non- availability of an affiliation for the award of a degree at the end of the course it takes the activity out of the exclusion. As far as ‘management and business consultancy service’ is concerned, it is seen that the consideration was received by them for various reports submitted by their students to outside bodies on conclusion of various projects as part of curriculum of the course. Undoubtedly, these may be of use to the outside entity but they are not the product of a professional business consultant. Accordingly, the tax as provider of ‘management and business consultancy’ may not sustain. Time Limitation - Held that:- The appellant themselves having made a full disclosure of these circumstances to the service tax authorities and they were guided entirely about the tax liability exists; it cannot, by any stretch, be found that appellant had misrepresented to the competent authority - extended period of limitation cannot be invoked - duty liability restricted for normal period. Appeal allowed in part.
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