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2023 (12) TMI 481 - AT - Service TaxNon-payment of service tax - service tax registration not obtained - Commercial Training and Coaching Services - institute is acting as a learning centre for Punjab Technical University and as a result of the same a degree or a diploma is awarded to the students for participating in the offered programs - HELD THAT:- It is evident that the Institute who fall under this category should be imparting skill, knowledge or lessons or any subject other than sports, with or without issuance of certificate and includes coaching or tutorial classes. In the present case, the institute is acting as a learning centre for Punjab Technical University and as a result of the same a degree or a diploma is awarded to the students for participating in the offered programs. Once that being by the definition as is exists during the relevant period, they are out of this definition as the definition clearly stated that it was with the purpose of issuance of occasional commercial teachings not a degree or a diploma granted by the university. After 01.07.2012 the definition of service was amended and concept of negative list is brought. It is undisputed that Punjab Technical University has been constituted by the Act of State Legislature. The degree is conferred by the said university on the students who undergo the courses offered by the said university either by attending the residential programs or attending the courses through distance Education Program. The clarification or circular issued by the UGC do not bar the conferment of the degree by Punjab Technical University to the students who undertake the degree programmes offered by the university through distance education programme - Once the degree has been conferred by the university duly constituted under a State Act or a Central Act, the institute offering such programmes will, go out of the ambit of the Commercial Coaching and Training Services. Delhi bench has in case of Punjab Technical University [2016 (1) TMI 162 - CESTAT NEW DELHI] after examining the Memorandum of Understanding etc has held that such centres are franchisee of the PTU and has held that service tax will be leviable under the category of Franchisee Services. From the above decision it is evident that the transactions between the appellant have been held to be taxable under the category of Franchisee Services. If the service tax is now levied under the category of Commercial Coaching and Training Centre Service again the same will amount to double taxation under two different categories. Thus the decision holding that the services provided by the appellant are classifiable under the category of Commercial Coaching and Training Center Services is contrary to the above decision of Delhi Bench. It is already held that the degree provided by the Punjab Technical University is recognized by the law and hence the deletion of the said phrase will not have any impact on findings recorded by us to the effect that the prior to introduction of Negative List, the services provided by the appellant are not covered by the definition of Commercial Training or Coaching Services. There are no merits in the impugned order and the same is set aside - appeal allowed.
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