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2017 (11) TMI 1230 - AT - Service TaxCommercial Training and Coaching service - fees received for offering courses of London School of Economics (University of London) resulting in issue of degree by the University of London - Fee received for coaching provided for Business English and Personality Development - scope of service - difference of opinion - majority order. Held that: - On the first issue, regarding courses offered by the appellant resulting in the degrees/diplomas awarded by University of London, I find that these degrees/diplomas are to be considered as recognized by the law for the time being in force - It is a well known fact that the colleges in India provide courses resulting in degrees or diplomas but the said degree and diplomas are issued by the University or the main Institute to which these colleges are affiliated. If it is to be held that as the degree is not issued by the college which is providing course, the college should be considered as a “commercial trainee or coaching centre”, subjected to service tax, such interpretation will result in absurd consequences. Admittedly, the degree or diplomas are issued by the Universities or the main organization to which the college or an institute or a centre is affiliated - the degree or diploma being issued by University of London can be considered at par while interpreting the scope of commercial training or coaching centre. Whether such a degree or diploma is recognized by law for the time being in force? - Held that: - the department has been taking consistently a view that when an educational institute is affiliated to a university/institution awarding a degree recognized by law, then the said institute is not a commercial training or coaching centre. Reference can be made to circular No.26/2003- 28.08.2012 and 26.02.2010 of the Board. Admittedly, the appellants were providing course resulting in the award of B.Tech, BBA, MBA of Allahabad Agricultural Institute (deemed university). No demand for Service Tax has been made in respect of these courses. Even on this ground, the appellants can not be considered as commercial coaching or training centre - Apart from the fact that the appellants will fall outside the purview of commercial coaching or training centre, I find that the Business English Course and Personality Development course offered by the appellants will be covered by exemption notification No.9/2003 ST. Demand not sustainable - appeal allowed - decided in favor of appellant.
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