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2019 (2) TMI 1568 - CESTAT HYDERABADCommercial training and coaching service - Vocational training institute - animation coaching - Exemption from payment of service tax - N/N. 24/2004-ST dated 10.9.2004 - whether the animation coaching provided by the appellant should be treated as computer training in terms of the aforesaid notification or otherwise? - time limitation - Held that:- The appellant’s coaching is not computer animation and not any computer software or hardware. When a student passes out the course he will not become either a computer hardware or a software professional but he becomes professional in using the computer software to produce animation and animation films. This is similar to CAD software or TALLY software used by professionals in their work. In our view, the test to decide whether or not the training in question is a training related to computer hardware or software is what the trainee does at the end of his training - In this case, the trainee will not become specialist in computer software or hardware and he will also not be equipped to develop new computer animation software. All he is trained is in using the software to develop animations. Therefore, the appellant is clearly not covered by the mischief of the proviso and the explanation to the notification 24/2004-ST. The appellant is not liable to pay service tax on the computer animation software training which they have provided as they are entitled to the benefit of exemption notification 24/2004 as amended vide notification 19/2005-ST dated 7.6.2005. Video tape production service - Held that:- The appellant produced animation movie and sold it for a consideration. Video tape production services as per Sec. 65(119) of the Finance Act, 1994 is any professional videography or a commercial concern engaged in the business of rendering service related to video production. ‘Video tape production’ means the process of recording any programme, event or function on a magnetic tape or on any other media or device and includes editing thereof in any manner. The animation film produced by the appellant clearly does not appear to be covered by this definition and therefore, we find appellant is not liable to pay service tax on this service as well. Since, we have decided in favour of the appellant on merits, we do not find it necessary to examine the question on limitation - appeal allowed - decided in favor of appellant.
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