New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (6) TMI 694 - CESTAT MUMBAI

2015 (6) TMI 694 - CESTAT MUMBAI - 2015 (40) S.T.R. 1107 (Tri. - Mumbai) - Commercial Training and Coaching service - vocational training - valuation - exemption under Notification 24/04-ST - levy of penalty - Held that:- From the course content, it is clear that courses are academic in nature and covers broad spectrum of subjects as diverse as Micro Economic, Business Communication, Psychology & Organizational Behaviour, Commercial Laws, Computer based Data-Analysis, Corporate Finance, Negotiat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oyment or self employment after the said course.

Decision in the case of Ashu Export Promoters P. Ltd. [2011 (11) TMI 387 - CESTAT, NEW DELHI] distinguished.

However in the case of the second appellant, we agree with the Ld Counsel that the genuine belief that Charitable Trusts are not covered by the expression "Commercial Training or Coaching Centre" is supported by the fact that Not 24/2004 was amended retrospectively to cover such institutions. Therefore the larger perio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he case of Intercontinental Consultant & Technocrafts P. Ltd. [2012 (12) TMI 150 - DELHI HIGH COURT] in which the Delhi High Court held that amounts recovered towards expenses cannot form part of the value of the service. Similar is the case relating to charges for re-examination fees which is an activity post the coaching training and is an expense recovered from the students. Accordingly, we hold that these charges are not includable in the value of the service.

In view of the uncer .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ppellants but set aside the demand for the larger period of limitation; however the penalties are set aside in terms of Section 80. - Appeal disposed of. - Appeal No. ST/23/10-Mum, Appeal No. ST/88123/13-Mum, Appeal No. ST/129/10-Mum - Final Order Nos. A/1447-1449/2015-WZB/STB - Dated:- 5-6-2015 - P S Pruthi, Member (T) And Ramesh Nair, Member (J),JJ. For the Appellant : Shri J C Patel & Shri V Y Khare, Advs. For the Respondent : Shri B Kumar Iyer, Supdt. (AR) for the res. no. 1 & 2, Shr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nst respective Order-in-Original/Orders in Appeal holding that the appellants are liable to pay tax under the category of "Commercial Training and Coaching service". Demands of duty, interest and penalties under Sections 77 & 78 in the case of the first two appellants and under Section 78 in the case of third appellant have been ordered. The appellants are in appeal against these orders. 3. The appellants are engaged in conducting courses at post graduate level in the field of Mark .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cond Appeal other amounts such as student development fees were also included. 4. Heard both sides and considered the submissions. As the submissions are common they will be dealt with together in our order. 5. The first contention of the Ld Counsels is that their activities are exempted under Notification 24/04-ST before it was amended by Not 3/2010. For sake of convenience, we reproduce the amended Notification below:- "In exercise of the powers conferred by sub-section (1) of section 93 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tute" means an Industrial Training Institute or an Industrial Training Centre affiliated to the National Council for Vocational Training, offering courses in designated trades as notified under the Apprentices Act, 1961(52 of 1961). Old [(i) "vocational training institute" means a commercial training or coaching centre which provides vocational training or coaching that impart skills to enable the trainee to seek employment or undertake self-employment, directly after such trainin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

7.6.05 Substituted vide Notification no. 3/2010-ST dated 27/2/2010 The ld. counsels state that during the period in question, the Explanation to Not 24/2004 stated that "vocational training institute" means a commercial training or coaching centre which provides vocational training or coaching that impart skills to enable the trainee to seek employment or undertake self-employment, directly after such training or coaching". The ld. counsels vehemently argue that all parts of this .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing. Therefore, there is no reason to deny the exemption under the plain definition of the term "vocational training institute" as it stood in the Notification before its amendment in 2010. The students did not take up the courses to obtain recognised degrees but took up courses which enabled them to seek employment. Thus this requirement in the Explanation is also met. He referred to the decision of the Tribunal in the case of Ashu Export Promoters P. Ltd. 2012 (25) S.T.R. 359 (Tri. - .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mp; Media School vs. CST 2013 (5) TMI 27 > Wigan & Leigh College (I) Ltd. vs. Jt. CST 2007 (8) STR 475 > WLC College India Ltd. vs. CST 2012 (27) STR 377 > Pasha Educational Training Inst. vs. CCE 2009 (14) STR 481 > Actor Prepares vs. CCE 2014 (33) STR 546 > Franklin Aviation Services P. Ltd. vs. CCE 2012 (26) STR 562 5.1 To support his contention that courses conducted by them will be covered under the definition of vocational training even if the duration of the courses is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hould be ignored. 6. We have gone through the said judgment in the appellant's own case i.e. Sadhana Educational & People Development Services P. Ltd. 2014 (33) STR 575 (Tri-Mum). We find that the matter has been dealt extensively by our ld. brothers who also considered the judgment relied upon by the ld. counsel before us in the case of Ashu Export Promoters P. Ltd. The counsel's contention is that the said judgment (Ashu Exports) of the Tribunal has been upheld by the Hon'ble H .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

9;s own case by our ld. brothers as below:- 4. We have considered the rival submissions and given considerable thought to the issue. At the outset, we note that appellant is accepting that they are providing Commercial Coaching and Training Centre. The dispute is limited to whether appellant's service is eligible for exemption under notification No.24/2004-ST dated 10.9.2004. Notification No. 24/2004-ST dated 10.9.2004 read as under:- "In exercise of the powers conferred by sub-section .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nal training institute" means a commercial training or coaching centre which provides vocational training or coaching that impart skills to enable the trainee to seek employment or undertake self-employment, directly after such training or coaching; (ii) "recreational training institute" means a commercial training or coaching centre which provides training or coaching relating to recreational activities such as dance, singing, martial arts or hobbies. Above notification exempts t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t graduates who were unemployed came to their institute underwent the two years course, and all the students on completion of course were employed by different organization or self employed and hence their course is vocational and institute "Vocational Training Institute". We are unable to agree with this contention, 100% employment or self employment is not decisive factor to decide whether a course is vocational course and institute is vocational training institute. The explanation c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ocational training. For example welding is a vocation but a post-graduate course is welding technology cannot be considered as vocational course. 5. We have gone through the content of the course, as submitted during arguments. It is seen the course is for a duration two years. The first year is common to all candidates. Thereafter they undergo summer training with some organization. In the second year, they undergo courses in one of the five disciplines/area of specialization viz. Financial Man .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

anagement Information System Manufacturing Management Project Management Corporate & Business Laws Financial Analysis Operations Management Quality Systems Management Advanced Data Analysis using MS Excel Commercial Laws Sales & Distribution Management Operation Research Techniques Psychology & Organizational Behaviour Performance Management System Applied Statistics Systems Management SPSS Applications Enterprise Management -Case Studies Enterprise Mgt. -Case Studies System Analysis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s. With Consumer, Market, Organisational or Social Research Assignments From the course content, it is clear that courses are academic in nature and covers broad spectrum of subjects as diverse as Micro Economic, Business Communication, Psychology & Organizational Behaviour, Commercial Laws, Computer based Data-Analysis, Corporate Finance, Negotiation & Contracting. In the second year, courses though gets limited to the field of specialization but are again diverse, theory oriented and a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

a) to explain what vocational courses are Ld. Advocate for the appellant argued that this judgment is in his favour as the Board of Practical Training (ER) Kolkata has listed various courses relating to Business & Commerce as Designated Trade for the Training of (10+2) Technical Vocational Apprentices under the apprentices (Amendment) Act, 1961. These courses include Accountancy and Auditing, Banking, Basic Financial Services etc. First of all, we note that the Apprentices Act, 1961 is for d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

didate who are already graduates, the two level are not same. In any case as elaborated in earlier paras the content of M.B.A. course is very wide. Just because few subjects (that also elementary level) of M.B.A. Course are different Designated Trades in the Apprentices Act does not make whole of M.B.A. Course as Vocational Course. We have also gone through the list of 70 trade in Engineering Discipline and 63 Trades in non-engineering discipline, referred in the Tribunal's order in the case .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or) 16 1 2 5 Non Engineering Trades Sl. No. Name of the Trade Duration Unit Size Year/Months No. of Semester Educational Qualification 8th passed 1 Embroidery and Needle Work 16 1 2 2 Cane Willow and Bamboo Work 16 1 2 3 Weaving of Silk and Woolen Fabrics 16 1 2 4 Weaving of Woolen Fabrics 16 1 2 62 Fire Technology and Industrial Safety Management 20 1 2 7. The nearest Trade is Human Resource Executive, Marketing Executive, Finance Executive. These trades are in very very narrow campus compared .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ena of case laws listed earlier. We have gone through each of the cases. We find the facts of the present case are distinguishable as none of these cases cover a general M.B.A. program with content of the program as wide and academic as in the present case. We do not consider it necessary to discuss each of these cases here. 7. In view of the above, we do not agree with the contention of the Ld Counsels and hold that they are not eligible for the benefit of Not 24/2004-ST. However in the case of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rds students special funds, alumni fund and deposit fund which were used for various expenses and on sale of form/prospectus and re-exam fees. The contention is that the amount recovered under students fund is recovered under receipts and is towards expenses such as textbooks, uniform, medical check-up, insurance etc. Unspent amounts are returned to the students. The ld. counsel also showed from the appeal papers the details of the amounts returned to the students. We agree with the reliance pla .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s a refundable security deposit to meet unforeseen expenses. As long as these expenses are specifically charged to the students the same cannot be included in the value of service applying the above ratio. 10. We also find that the amount collected towards sale of forms, prospectus will not be includable in the value on which service tax is demanded relying on the Tribunal's judgment in the case of Cerebral Learning Solutions P. Ltd. 2013 (32) STR 379 (Tri-Del) which held that Notification 1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

with the various decisions of the Tribunal. In the case of the second appellant it was contended for the period April 2006 onwards they had become a public charitable trust and were under bonafide belief that such trusts are not covered by the expression "Commercial Training and Coaching Service" as was also held in various decisions of the Tribunal. Although the Notification was retrospectively amended in 2010 to cover all such institutes within the ambit of "Commercial Training .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version