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2019 (10) TMI 412 - AT - Service TaxCommercial Training or Coaching Service - Impart of training to the newly recruited drivers and conductors of State owned transport undertaking and collecting fees for such training - demand of service tax - Profit motive or not - scope of word 'commercial' - Benefit of N/N. 24/2004-S.T., dated 10-9-2004 - extended period of limitation - HELD THAT:- It is not disputed that the appellant has collected fees from the newly recruited drivers and conductors for giving them training. The training imparted was not rendered free of charge. This being the case, as per the Board's Circular No. 59/8/2003-S.T., dated 20-6-2003, the activity of training imparted by the appellant would fail under the category of ‘Commercial Training or Coaching Services”. Profit motive or not - scope of word 'commercial' - second contention taken by the Learned Counsel is that the appellant being a Public Sector Undertaking their activity had no profit motive - HELD THAT:- The amendment brought forth on 26-2-2010, has introduced an Explanation wherein, it is stated that "commercial" means "any training or coaching that is provided for consideration irrespective of the presence or absence of any profit motive." The said Explanation is applicable retrospectively, which means, it is applicable from 1-7-2003 onwards. Thus, the second argument of the Learned Counsel also fails. Benefit of N/N. 24/2004-S.T., dated 10-9-2004 - third argument put forward by the Learned Counsel is that the training imparted by them is in the nature of vocational training - HELD THAT:- Vocational training means "the training that imparts skills to the candidates in order to enable the candidate to seek employment or undertake self- employment, directly after such training." In the present case, the training is imparted to employees, who have already been recruited by the appellant as drivers and conductors. Therefore, the definition of "Vocational Training" will not be applicable for the activity of training rendered by the appellant - Thus, there are no grounds to set aside the demand on merits of the case. Extended period of limitation - HELD THAT:- There was some confusion as to the interpretation of the word "commercial" used in the definition of the said service - Again, the appellant is a State Government Undertaking and there cannot be any mala fide intention on the part of the appellant to evade payment of service tax - there are no ingredients for invoking the extended period. There is, ho positive act of suppression of facts with intention to evade payment of tax established by the department. The issue as to whether a Public Sector Undertaking can be considered to be a "commercial concern" is also an interpretational one - extended period cannot be invoked. The impugned order to the extent of the demand invoking extended period is set aside - Any demand and interest thereon which falls for the normal period is not interfered - However, the penalties for the normal period are set aside - appeal allowed in part.
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