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2023 (11) TMI 419 - CESTAT MUMBAILevy of Service Tax - Commercial Training or Coaching Services - imparting coaching for competitive examinations to its own students enrolled in +2 & +3 courses - renting of immovable property - HELD THAT:- Larger Bench of this Tribunal was constituted to resolve divergent views taken by two Benches of this Tribunal in SRI CHAITANYA EDUCATIONAL COMMITTEE (SCEC) VERSUS COMMISSIONER OF CUSTOMS, CENTRAL EXCISE AND SERVICE TAX, GUNTUR, COMMISSIONER OF CUSTOMS, CENTRAL EXCISE AND SERVICE TAX, GUNTUR VERSUS SRI CHAITANYA EDUCATIONAL COMMITTEE (SCEC) [2015 (6) TMI 627 - CESTAT BANGALORE (LB)] and M/S. ITM INTERNATIONAL PVT. LTD. VERSUS C.S.T., DELHI [2017 (11) TMI 1230 - CESTAT NEW DELHI (LB)]. Interestingly when both the Members of both the Benches could not agree on the taxability of “Commercial Training and Coaching” imparted by the Appellant therein and the issue was referred by them to Third Members respectively, the Third Members gave divergent findings holding the same to be taxable in M/s. Shri Chaitanya Educational Committee case and not taxable in ITM International Pvt. Ltd. case. So, in order to resolve divergent findings of Third Members, a three Members Larger Bench was constituted that ultimately concluded that when Appellant does not issue certificate recognized by Law, its activities fall under the category of “Commercial Training or Coaching Services” for which the decision of the Tribunal in M/s. Shri Chaitanya Educational Committee was stated to have laid the correct position of law. The Appellant case is squarely covered by the decision of this Tribunal passed in SRI CHAITANYA EDUCATIONAL COMMITTEE VERSUS COMMISSIONER OF CUS, CE & ST GUNTUR (VICE-VERSA) [2018 (4) TMI 664 - CESTAT HYDERABAD] where it was held that and essentially an activity by an 'educational institution' as defined with reference to Section 66D of the Finance Act, 1994 was outside the purview of service tax and the appellants are squarely covered in the ambit of the same, accordingly demand of service tax der any category fails. In so far as renting of immovable property is concerned the demand being made on an amount which is below the threshold of Small Scale exemption, the same can’t sustain. The impugned order set aside - appeal allowed.
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