TMI Blog2009 (12) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue is rejected. - ST/365 OF 2007 - 1495 OF 2009 - Dated:- 1-12-2009 - M.V. RAVINDRAN, JUDICIAL MEMBER AND P. KARTHIKEYAN, TECHNICAL MEMBER M. Vivekanandan for the Appellant. Ms. Radha Arun for the Respondent. JUDGMENT M.V. Ravindran, Judicial Member - Revenue has filed this appeal against the Order-in-Appeal No. 18/2007(H-II) S.Tax, dated 31-5-2007. 2.1 The relevant facts that arise for consideration are the Appellants are engaged in conducting 2 years' Masters Programme in International Business (MPIB) with academic and faculty support from Indian Institute of Foreign Trade, New Delhi (IIFT). It was observed that the Appellants have been providing taxable services under the category of Commercial Coaching or Training Service (CTC) to various students; collecting fee from them but they neither registered themselves with the Central Excise Department for paying service tax on such services nor did they paid any service tax to the account of the Central Government as was required under the provisions of Finance Act, 1994. Any training or coaching provided by a commercial training or coaching centre has been classified as taxable service with effect from 1-7-200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vers "any institution or organisation". The term 'Commercial Concern" has not been used as has been done in respect of many other taxable services. (b) the assessee is conducting the course "Master Programme in International Business" and the same is not recognised by law. The Commissioner (Appeals) held that the assessee is imparting education in Management education in the field of International Trade and Business operations. The finding of the Commissioner (Appeals) is incorrect because the assessee is engaged in the activity of Coaching and Training. In terms of section 65 of Finance Act, 1994 the Commercial Coaching or Training means "any training or coaching provided by a Commercial or Training Coaching Centre". In terms of section 65(27) of Finance Act, 1994 Commercial Training or Coaching Centre means "any institute providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes but does not include pre-school coaching and training centre or any institute or establishment which issues any certificate or diploma or degree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mas and not to the courses offered by the assessee. It is a fact that that the assessee is collecting huge fees amounts from their students and the "institute is run on commercial basis as seen from the memorandum of understanding. What is commercial is that the course is not offered free of cost to the students. The assessee is charging hefty amount of fees from the students. It is very important to note at this point of time that the service tax liability arises on the activity of the assessee. From the foregoing, it is clear that the activity undertaken by the assessee is clearly covered under the definition of Coaching or Training by commercial coaching or training centre, in terms of section 65(26) read with section 65(27) of the Finance Act, 1994. When the activity falls under the service tax net then the liability of service tax will automatically accrue on the total amount of amounts collected on this account. (c) The Commissioner (Appeals) has also held that the assessee is not covered under the commercial concern by deducing the same from the memorandum of understanding read with the registration under other statutory organisation as not-for- profit organisation. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... She would also submit that the ld. Commissioner (Appeals) has correctly come to the conclusion that the respondents are in the activity of imparting specialized education. It cannot be constitute as training or coaching and getting more so and this is not commercial in nature. 5. We have considered the submissions made by both sides and perused the records. We have also gone through the grounds of appeal read out before us by the ld. SDR. On the perusal of the records, the issue, for our consideration is whether the respondent is providing services under the category 'training or coaching classes'. It is undisputed that the appellant is engaged in conducting two year Masters Programme in International Business with faculty support from IIFT, New Delhi. It is also undisputed that the respondent is a educational society promoted for the impart of education and is a non-profit organization. The point which has been raised by the Revenue in the grounds of appeal is that the respondent is a commercial institute, as they are collecting high fees from the students and the institute is run on a commercial basis as seen from the memorandum of understanding and the course is not offered f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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