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2020 (7) TMI 232 - AT - Service TaxCommercial Training or Coaching Services - appellant is a PSU mainly engaged in the activity of ship building and repair works - period from April 2007 to June 2012 - Department entertained a view that the appellant is liable to pay service tax on the fee income earned from the students under the category of Commercial Training or Coaching Services - pre-negative and post negative list regime - HELD THAT:- The lower appellate authority has upheld the demand on the premise that the course offered by the appellant cannot be said to be statutory in nature and hence, cannot be said to have been recognised by law, which in our view is factually incorrect. The lower authority seemed to have lost sight of the factual position that the subject courses have been approved by the Director General of Shipping, Ministry of Surface Transport, Govt. of India, in consonance with the provisions of the Merchant Shipping Act, 1958, a fact which was always available before them - There cannot be any iota of doubt to hold that the courses assumes to be of statutory nature and hence, qualifies as being “recognised under the law” and consequently, eligible for claiming exclusion from levy of service tax both in the pre-negative list and negative list service taxation regime. The Ld. Advocate for the appellant submitted a list containing detailed break-up of fee earned from courses which have been approved as well as courses which have not been approved by the Directorate General of Shipping. The same is being submitted for the first time before the Tribunal and hence, were not available before the adjudicating authorities below. The justice would be met if the matter is remanded to the original authority for limited purpose of computation of service tax payable on courses not approved by the Directorate General of Shipping, restricted to the period covered under normal period of limitation, since the extended period of limitation is not available in absence of fraud or suppression on the part of the appellant. On the same count, penalty is also not imposable and hence set aside in entirety - appeal allowed by way of remand.
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