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2022 (10) TMI 287 - AT - Service TaxLevy of Service Tax - Commercial Training or Coaching Service - computer training provided by the appellant to the students - period 21.06.2006 to 30.11.2009 - eligibility for small scale exemption available under the Notification No. 6/2005-ST dated 01.03.2005 - extended period of limitation - penalty - HELD THAT:- There is no dispute that the appellant are franchisee of SITD and the service was also provided to the students by the SITD, therefore the appellant are providing service under the brand name of another person. Therefore, they are not eligible for small scale exemption. The appellant also raised a point that they are eligible for exemption on the vocational training service. In this regard, it is found that Computer Education service has been excluded from the Vocational Training service by Notification No. 19/2005-ST dated 07.06.2005. In this case the period involved is 21.06.2006 to 30.11.2009 therefore, the appellant is not eligible for exemption under the vocational training. Extended period of limitation - HELD THAT:- For the period 21.06.2006 to 30.11.2009, the show cause notice was issued on 03.06.2010 wherein the extended period was invoked. The issue is a neat question of law involving interpretation whether the same is falling under Commercial Training or Coaching Service and it is also observed that the appellant had a bonafide belief being a very small service provider having taxable value of Rs. 1,26,200/- that too in four years, they are eligible for small scale exemption under Notification No. 6/2005-ST. Thus, the issue was also involved an interpretation of notification. Penalty - HELD THAT:- The appellant have not hidden the transaction which was retrieved from their record. Considering the overall facts, the demand for extended period is not sustainable. Consequently, the penalty under section78 is also not imposable. The appellant is liable to service tax only for the normal period and demand for extended period and entire penalty is set-aside - appeal allowed in part.
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