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2019 (3) TMI 1012 - AAAR - GSTExemption from GST - activity provided by UCMAS using abacus - applicability of Entry No. 80 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 - challenge to AAR decision - Held that:- N/N. 9/2003-Service Tax dated 20.06.2003 and N/N. 24/2004-Service Tax dated 10.09.2004 provided exemption from taxable services provided in relation to commercial training or coaching by a recreational training institute. ‘Recreational Training Institute’ was defined in those Notifications as a commercial training or coaching centre which provides coaching or training relating to recreational activities such as dance, singing, martial arts, hobbies. Hon’ble CESTAT in the case of FAST ARITHMETIC VERSUS ACCE, ST & EOU DIVISION, MANGALORE [2009 (5) TMI 70 - CESTAT, BANGALORE] held that the abacus training programme imparted is mainly to create interest in children for mathematics and also to enhance their thinking capacity. It is held that the entire thing is done by employing methods of play so as to make the whole thing interesting and by no means, this activity could be compared with the activities undertaken by commercial coaching or training centre. It was further held that Notification Nos. 9/2003-Service Tax dated 20.06.2003 and Notification No. 24/2004-Service Tax provided specific exemption for recreational training institute and vocational training institute. It was held that the activities of the appellant therein would more appropriately be classified as recreational. It is settled principle of law that exemption notification has to be read strictly so far as the eligibility is concerned. When the wordings of the Notification are clear and unambiguous, they must be given effect to. By a strained reasoning, benefit cannot be given when it is clearly not available. The appellant has failed to establish that activities carried out by them are covered under Entry No. 80 of N/N. 12/2017-Central Tax (Rate). Decision of AAR upheld.
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